21A. Guaranteeing of credit facilities and indemnifying credit institutions.—(1) The Corporation
may guarantee credit facilities given by any credit institution and may also indemnify credit institutions in
respect of credit facilities granted by them.
(2) The Board may, for the purpose of guaranteeing credit facilities granted by credit institutions or
indemnifying credit institutions, frame one or more schemes in such form and in such manner and
containing such provisions as the Board may, from time to time, deem fit.
(3) The Board may levy, on every credit institution availing itself of the guarantees or indemnities
provided by the Corporation, a fee at such rate or rates as may, with the previous approval of the Reserve
1. Ins. by Act 30 of 2021, s. 5 (w.e.f. 1-9-2021).
2. Ins. by s. 6, ibid. (w.e.f. 1-9-2021).
3. Ins. by s. 7, ibid. (w.e.f. 1-9-2021).
4. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
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Bank, be notified by the Corporation to the credit institution from time to time and different rates may be
notified for different categories of credit institutions, for different types of credit facilities, for different
areas where the credit facilities are utilised, or for different categories of beneficiaries of the credit
facilities.
Explanation.—“Credit facility” means any financial assistance, including a loan or advance, cash
credit, overdraft, bills purchased or discounted, a term of instalment credit and any guarantee other than a
performance guarantee, granted or issued in India by a credit institution at any of its offices in India.
21B. Corporation to act as agent of Central Government.—The Corporation may act as agent for
the Central Government,—
(i) in guaranteeing the due performance by any small-scale industrial concern or other institution
or undertaking or categories of institutions or undertakings approved by the Central Government in
this behalf, of its, or their, obligations to any credit institution in respect of loans and advances made
or other credit facilities provided to it, or them, by such credit institution, and
(ii) in making, as such agent, of payments in connection with such guarantee.]