On 27th April 2023, the Ministry of Micro, Small & Medium Enterprises (MSME) launched the revamped CGTMSE Scheme, with an additional corpus support of 9,000 crores in the Union Budget for FY 2023-24 to revamp its Scheme to provide a guarantee for additional ₹2 lakh crore to Micro & Small Enterprises.
The modifications included a reduction in guarantee fees for loans up to 1 crore by 50%, bringing the minimum guarantee fee to the level of 0.37% pa only. Another major change announced was raising the ceiling for a guarantee from 2 crores to 5 crores and enhancing the threshold limit for claim settlement without initiating legal action to 10 lakhs.