Regulatory Alerts2024-07-01
Added · Updated
CGD Circular Letter No. 01: Circular on Reducing Guarantee Fee against Credit Guarantee Facilities in CMSMEs and Financial Inclusion Sector
The document mandates that participating banks and financial institutions pay a guarantee fee of 0.50 percent on the first year of credit guarantee registration, and 0.25 percent annually thereafter on the outstanding principal balance. These reduced rates apply specifically to credit guarantee facilities for Cottage, Micro, Small, and Medium Enterprises (CMSMEs) and the Financial Inclusion sector. The directive amends specific clauses of Circular Letter No. 01 dated November 8, 2023, and takes immediate effect under the authority of the Banking Company Act, 1991, and the Financial Institution Act, 1993.