GS Paper - 3 (Economy)

The Reserve Bank said NaBFID will be regulated and supervised as an All India Financial Institution by it under the RBI Act, 1934. The National Bank for Financing Infrastructure and Development (NaBFID) Act, 2021, received the assent of the President on 28 March 2021. It came to force with effect from 19 April 2021.

As per RBI

  1. NaBFID has been set up as a Development Financial Institution (DFI) to support the development of long-term infrastructure financing in India.
  2. NaBFID shall be regulated and supervised as an All India Financial Institution (AIFI) by the Reserve Bank under Sections 45L and 45N of the Reserve Bank of India Act, 1934.
  3. It shall be the fifth AIFI after EXIM Bank, NABARD, NHB and SIDBI, said the apex bank.
  4. The objective of the National Bank for Financing Infrastructure and Development (NaBFID) to support the development of long term non-recourse infrastructure financing in India, including development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure.