The Government of India has notified the National Bank for Financing Infrastructure and Development (NaBFID) as a public financial institution under the Companies Act.
- The Corporate Affairs Ministry said that in exercise of the powers, under Section 2 of the Companies Act, 2013, the Central Government, in consultation with the Reserve Bank of India notified National Bank for Financing Infrastructure and Development as a “public financial institution”.
- The move will enhance the bank’s capacity to finance large-scale infrastructure projects, thereby bolstering the country’s infrastructure development.
- NaBFID, a specialised Development Finance Institution (DFI), was set up in 2021, by an Act (The National Bank for Financing Infrastructure and Development Act, 2021).
- The Bank was set up with the essential objectives of 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.
