Development Financial Institutions

Syllabus: Context: Government has announced the setting up of a new dfi. The new dfi is expected to build a portfolio of ₹5 trillion in the next three years. Introduction: The development finance institutions (dfi) are usually owned by the government or public institutions. Dfis provide funds for infrastructure and large-scale projects. Large scale banks are often not interested in lending for such projects due to viability issues. The prime objective of dfi is the economic development of the country via financing infrastructure activities. Their cost of borrowings also reduces because of the attached government guarantees. Background: In india, the....Read More