Current Context : The government has notified the National Bank for Financing Infrastructure and Development (NaBFID) as a public financial institution under the Companies Act.

• The move will enhance the bank’s capacity to finance large-scale infrastructure projects, thereby bolstering the country’s infrastructure development.

ABOUT  NABFID

• NaBFID is a specialised Development Finance Institution (DFI).
• Established in 2021, by an Act (The National Bank for Financing Infrastructure and Development Act, 2021).
• It was set up to support long-term infrastructure financing in India, including:
  • Developing bonds and derivatives markets, Strengthening the country’s economy, and Addressing gaps in long-term non-recourse finance.
• Regulated and supervised as an All-India Financial Institution (AIFI) by the Reserve Bank of India (RBI).