NEWS – The government aims to increase NaBFID’s capital base to ₹1 trillion through support from banks.

HIGHLIGHTS

About NaBFID:

• Establishment: Set up in 2021 by the National Bank for Financing Infrastructure and Development Act, 2021.
• Nature: Specialized Development Finance Institution (DFI) in India.
• Objectives: Address gaps in long-term non-recourse finance for infrastructure development + Strengthen the development of bonds and derivatives markets in India + Sustainably boost India’s economy.
• Regulation: Regulated and supervised by the Reserve Bank of India (RBI) as an All-India Financial Institution (AIFI).
• Purpose: Dedicated to addressing the long-term financing needs of India’s infrastructure sector.

Development Finance Institution (DFI):

• Definition:
  • Organizations owned by the government or public institutions to provide funds for infrastructure and large-scale projects.
• Funding Types:
  • Medium-term funds (1-5 years).
  • Long-term funds (> 5 years).