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01/07/2022 12:11pm

Private Banks used ECLGS more for MSME lending than public sector: RBI

image Private Banks used ECLGS more for MSME lending than public sector: RBI

Mumbai, July 1 (KNN) Under the central government’s ECLGS scheme, private sector banks have attained a greater market share in MSME lending as compared to public sector banks (PSBs), as per RBI’s latest Financial Stability Report.

PSBs have managed to attract 22.65 lakh new borrowers while private banks have surpassed the former’s figure three times by recording 67.61 lakhs fresh borrowers under ECLGS scheme.

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According to the central bank’s report public sector banks disbursed Rs 79,800 crore which is lesser than Rs 95,700 crore disbursed by private banks.

The government on May 20, 2020 had launched the Emergency Credit Line Guarantee Scheme (ECLGS) to support MSMEs sustain and recover during the covid-19 pandemic.

It included the lockdown period providing 100 per cent guarantee coverage to select borrowers.

Since then it has undergone several iterations and currently its validity stands extended to March 31, 2023 or till guarantees for an amount of Rs 5 lakh crore are issued.  (KNN Bureau)

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