NCGTC Amends CGSMFI 2.0 Framework to Boost Credit Allocation for Small and Medium MFIs
Lenders are now mandated to reserve a minimum of 15% of total guarantee cover specifically for small and medium-sized Microfinance Institutions (MFIs), replacing the earlier thresholds of 5% for small and 10% for medium entities.
The scheme's maximum borrowing limits remain set at 20% of an MFI's Assets Under Management (AUM), capped at ₹100 crore for small MFIs, ₹200 crore for medium MFIs, and ₹1,000 crore for large MFIs.
Small MFIs are defined as entities with AUM under ₹500 crore, medium MFIs hold AUM between ₹500 crore and ₹2,000 crore, and large MFIs possess AUM exceeding ₹2,000 crore.
Exam Perspective: CGSMFI 2.0 was originally introduced on March 20, 2026, backing a ₹20,000 crore credit pool, and will operate through August 31, 2026.
Key Facts / Static GK
NCGTC Ownership: Department of Financial Services, Ministry of Finance
Q Practice Quiz — 5 August 2026
1. Which of the following statements regarding the RBI's updated Bulk Deposit Interest Rate Directions 2026 is/are correct?
Explanation: Statement I: The framework allows differential rates on bulk deposits based on LCR run-off rates from October 1, 2026. Statement II: Commercial banks and SFBs share a bulk deposit threshold of ₹3 crore, while RRBs have a threshold of ₹1 crore.
2. Under the revised CGSMFI 2.0 guidelines, what is the mandatory minimum combined allocation percentage of guarantee cover reserved for small and medium MFIs?
Explanation: Banks must now allocate at least 15% of the total guarantee cover under CGSMFI 2.0 to small and medium-sized MFIs, replacing the previous segregated structure of 5% and 10%.
3. Which agency constructed the new Income Tax Department office complex 'Aayakar Sindhu' inaugurated in Mumbai?
Explanation: The 'Aayakar Sindhu' office complex in Nariman Point, Mumbai, was constructed by the Central Public Works Department (CPWD).
4. Which Non-Banking Financial Company (NBFC) has partnered with Flipkart as the principal lending partner for 'Flipkart Pay Later'?
Explanation: PayU Finance, the NBFC arm of PayU, serves as the primary licensed lender for the Flipkart Pay Later digital credit solution.
5. Which founding document led to the formal establishment of the Arctic Council in 1996?
Explanation: The Arctic Council was officially established in 1996 through the adoption of the Ottawa Declaration.
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