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National Bank for Financing Infrastructure and Development (NaBFID)

ByULF TEAM

Jun 17, 2023 #Economy
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Recently, the National Bank for Financing Infrastructure and Development (NaBFID) has raised ₹10,000 crores via the maiden issuance of listed bonds.

About NaBFID:

  • It was set up in 2021, by an Act of the Parliament (The National Bank for Financing Infrastructure and Development Act, 2021).
  • It is a specialized Development Finance Institution in India.
  • Objectives: Addressing the gaps in long-term non-recourse finance for infrastructure development, strengthening the development of bonds and derivatives markets in India, and sustainably boosting the country’s economy.
  • It shall be regulated and supervised by RBI as an All-India Financial Institution (AIFI) 

What is a Development Finance Institution (DFI)?

  • These are organizations owned by the government or public institutions to provide funds for infrastructure and large-scale projects, where it often becomes unviable for large banks to lend.
  • They provide two types of funds- Medium (1-5 years) and Large (< 5 years).

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