Q. Consider the following statements regarding the Credit Guarantee Scheme for Microfinance Institutions-2.0:
1.It is a credit guarantee scheme that provides cover to banks against losses on loans given to MFIs for small borrowers.
2.The scheme is implemented under the Department of Financial Services.
3.It provides direct cash transfers to beneficiaries instead of facilitating institutional credit.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation: 1 and 2 only
- CGSMFI-2.0 is designed to support microfinance institutions by providing credit guarantee cover, enabling them to extend loans to low-income and vulnerable sections. It is overseen by the Ministry of Finance. The scheme does not involve direct cash transfers.
Source: PIB
