समाचार में क्यों
- Government approved ECLGS 5.0 to cushion MSMEs and key domestic sectors against external supply chain and geopolitical disruptions.
मुख्य शब्द
NCGTC
A wholly owned trustee company set up by the Ministry of Finance to manage credit guarantee funds.
Jan Samarth Portal
A digital portal linking central government credit-linked schemes to simplify digital loan applications.
What is ECLGS 5.0?
- A government-backed credit guarantee framework launched to address working capital constraints and liquidity stress caused by external economic shocks.
- Administered through the National Credit Guarantee Trustee Company (NCGTC) to extend 100% guarantee coverage to Member Lending Institutions.
Key operational features
- Aims to facilitate an additional credit flow of up to ₹2.55 lakh crore across eligible entities.
- Expands coverage beyond MSMEs to include non-MSME business borrowers and scheduled passenger airlines affected by rising logistics and operating costs.
- Leverages the Jan Samarth Portal to streamline digital application processing and credit sanction by banks.
Why it matters
- Prevents debt default cascades in vulnerable sectors without requiring direct fiscal cash transfers from the central budget.
- Sustains employment levels and prevents domestic manufacturing disruptions during global geopolitical uncertainty.
प्रीलिम्स तथ्य
- NCGTC is a wholly owned company under the Department of Financial Services, Ministry of Finance.
- ECLGS provides 100% credit guarantee coverage to lenders rather than direct cash subsidies to borrowers.
मेंस चर्चा
- Role of emergency credit guarantees in absorbing external economic supply chain shocks.
- Evaluation of sovereign credit guarantee structures versus direct fiscal interventions for MSME survival.
स्रोत: PIB English
समान विषय · पिछले पेपर
UPSC ने यह पहले भी पूछा है
ये पिछले वर्षों के प्रश्न उसी विषय पर हैं। अभ्यास के लिए खोलें।