National Bank for Financing Infrastructure and Development
The National Bank for Financing Infrastructure and Development (NaBFID) is a government-owned Development Financial Institution (DFI) in India, established under the NaBFID Act, 2021. Recognized by the Reserve Bank of India (RBI) as an All India Financial Institution (AIFI), NaBFID began its operations in December 2022 with the primary aim of promoting infrastructure financing across the country.
Key Functions and Objectives:
• Infrastructure Financing: As a DFI and AIFI, NaBFID’s core mandate is to channel investment into critical infrastructure sectors such as energy, roads, railways, and urban infrastructure.
• Financial Instruments: The institution provides a variety of financial products including loans, guarantees, and underwriting facilities.
• Support for Greenfield and Brownfield Projects: It finances both new projects (Greenfield) and expansions or enhancements of existing facilities (Brownfield).
Capital and Funding:
• Capital Base: NaBFID was established with a significant capital base and seeks to augment its resources through market borrowings, issuing bonds, and securing loans from domestic and international financial markets.
• Government Support: As a government-backed DFI, NaBFID benefits from strong governmental financial backing, ensuring a reliable supply of funds for infrastructure projects.
Impact and Significance:
• Enhancing Infrastructure: NaBFID plays a pivotal role in improving India’s infrastructure, which is crucial for the country’s economic growth and development.
• Boosting Economic Growth: By enhancing infrastructure, NaBFID helps improve connectivity, increase productivity, and attract more investment, fostering broader economic development.
As an AIFI recognized by the RBI, NaBFID is strategically positioned to address India’s infrastructure needs, ensuring that projects have access to necessary funding and support.
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