Daily Current Affairs for UPSC Civil Services Exam – 14 December 2020

Daily Current Affairs for UPSC Civil Services Exam – 14 December 2020

In Today’s News:

  1. ECLGS scheme.
  2. Myristica swamp treefrog.

1. ECLGS scheme

News Summary

There was a slowdown in the loans sanctioned to MSMEs during the October and November months under the Rs.3 lakh crore ECLGS scheme which was announced by the government of India in May 2020.

Prelims GS – Economic Development

ECLGS scheme:
  • ECLGS refers to the “Emergency Credit Line Guarantee Scheme”.
  • It is launched by the Government of India as a special scheme in view of the COVID-19 crisis.
  • Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC)  for additional funding of up to Rs. three lakh crore to eligible MSMEs and interested MUDRA. borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility.
  • The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.
  • The tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
  • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
  • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.
GECL facility:(Guaranteed Emergency Credit Line )
  • The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility and non-fund based facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), an additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises, individual borrowers in case of the original loan has been for own business and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers.
  • Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 500 crore, excluding off-balance sheet and non-fund based exposures, as on 29th February 2020, i.e., additional credit shall be up to Rs.100 crore.
  • GECL in respect of borrowers with credit outstanding above Rs.50 crore and not exceeding Rs.500 crore is restricted to borrowers in the 26 sectors identified by Kamath Committee on Resolution Framework in its report of September 04, 2020, and the Healthcare sector and GECL here can be provided as fund based or non-fund based or a mix of two.

Click here to view the Press release of PIB.

Mini Insights

Mains GS3  – Economic Development

Impact of ECLGS scheme:
  • The Scheme has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.
  • In view of the critical role of the MSME sector in the economy and in providing employment, the proposed Scheme is expected to provide much-needed relief to the sector by incentivizing MLIs to provide additional credit of up to Rs.3 lakh crore to the sector at a low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.
  • By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.

Click here to know more about ECLGS and click here to view the FAQs.

2. Myristica swamp treefrog

News Summary

Rare Myristica swamp treefrog has been found in Kerala’s Thrissur district for the first time north of the Shencottah gap in the Vazhachal Reserve forest in 2018.

Prelims GS – Environment

Myristica swamp treefrog:
  • Scientific Name: Mercurana myristicapalustris
  • Myristica swamp treefrog is endemic to the Western Ghats.
  • It is a rare arboreal species.
  • Breeding season: Starts in the Pre-monsoon season (May) and ends before the monsoon becomes active in June.
  • These frogs are very difficult to catch as they are active only for a few weeks during their breeding season.

 

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