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).
