{"id":12170,"date":"2025-02-02T11:46:29","date_gmt":"2025-02-02T06:16:29","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=12170"},"modified":"2025-03-30T07:46:42","modified_gmt":"2025-03-30T02:16:42","slug":"national-bank-for-financing-infrastructure-and-development-nabfid","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/national-bank-for-financing-infrastructure-and-development-nabfid\/","title":{"rendered":"National Bank for Financing Infrastructure and Development (NaBFID)"},"content":{"rendered":"<h2>National Bank for Financing Infrastructure and Development Latest News<\/h2>\n<p>The Finance Minister recently said the National Bank for Financing Infrastructure and Development (NaBFID) will set up a partial credit enhancement facility for corporate bonds in the infrastructure sector.<\/p>\n<h2>About National Bank for Financing Infrastructure and Development (NaBFID)<\/h2>\n<ul>\n<li>It is a <strong>specialized Development Finance Institution<\/strong> in India aimed at <strong>supporting the country&#8217;s infrastructure sector,<\/strong> which can significantly gain from an e<strong>nabling credit flow b<\/strong>y means of attractive instruments and channelized investment.<\/li>\n<li>NaBFID was <strong>set up in 2021, by an Act of the Parliament (<\/strong>The National Bank for Financing Infrastructure and Development Act, 2021),\u00a0<\/li>\n<li><strong>Objectives<\/strong>: Addressing the gaps in long-term non-recourse finance for infrastructure development, <strong>strengthening the development of bonds and derivatives markets<\/strong> in India, and sustainably boosting the country\u2019s economy.<\/li>\n<li><strong>Regulated by: <\/strong>It shall be re<strong>gulated and supervised by RBI <\/strong>as an All-India Financial Institution (AIFI).<\/li>\n<li>The principal idea behind the setup of NaBFID is to provide a dedicated and specialized institution focused on addressing the long-term financing needs of the infrastructure sector in India.\u00a0<\/li>\n<\/ul>\n<h2>What are Development Finance Institutions (DFIs)?<\/h2>\n<ul>\n<li>These are organizations <strong>owned by the government or public institutions<\/strong> to <strong>provide funds for infrastructure<\/strong> and <strong>large-scale projects<\/strong>, where it often becomes unviable for large banks to lend.<\/li>\n<li>They provide two types of <strong>funds- Medium (1-5 years) and Large (&lt; 5 years).<\/strong><\/li>\n<li>The prime objective of DFI is the economic development of the country via financing infrastructure activities.<\/li>\n<li>These institutions<strong> provide long-term financial as well as technical support<\/strong> to various sectors.<\/li>\n<li>DFIs <strong>do not accept deposits from people,<\/strong> but they <strong>raise funds by borrowing from governments, insurance companies<\/strong>, pension funds, and sovereign funds.<\/li>\n<li>It also <strong>provides a guarantee to banks on behalf of companies<\/strong> and subscriptions to shares, debentures, etc.<\/li>\n<li>They also <strong>provide technical assistance<\/strong> like <strong>Project Report, Viability study<\/strong>, and consultancy services.<\/li>\n<li>DFIs provide credit enhancement for infrastructure and housing projects and also help in improving debt flows towards infrastructure projects.<\/li>\n<\/ul>\n<h2>National Bank for Financing Infrastructure and Development FAQs<\/h2>\n<p><strong>Q1<\/strong>. Is NaBFID regulated by RBI?<\/p>\n<p><strong>Ans<\/strong>. RBI has advised that NaBFID shall be regulated and supervised by RBI as an All India Financial Institution (AIFI).<\/p>\n<p><strong>Q2<\/strong>. Who are the shareholders of NaBFID?<\/p>\n<p><strong>Ans<\/strong>. The entire shareholding of the Institution is currently held by the Government of India.<\/p>\n<p><strong>Q3<\/strong>. What is the purpose of development finance?<\/p>\n<p><strong>Ans<\/strong>. Development finance is the invisible glue that connects public and private financing for projects that have social, economic and environmental outcomes.<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.business-standard.com\/budget\/news\/budget-2025-nabfid-s-partial-credit-guarantee-to-boost-corporate-bond-mkt-125020101435_1.html\" target=\"_blank\" rel=\"nofollow noopener\">BS<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Bank for Financing Infrastructure and Development is a specialized Development Finance Institution in India aimed at supporting the country&#8217;s infrastructure sector.<\/p>\n","protected":false},"author":5,"featured_media":12171,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-12170","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/12170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=12170"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/12170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/12171"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=12170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=12170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=12170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}