Government notifies NaBFID as a public financial institution under the Companies Act
Representative Image: Rajkiran Rai, Chairman, National Infrastructure and Development Finance Bank (NaBFID) | Credit: Company Website
The government has registered the National Bank for Infrastructure and Development Financing (NaBFID) as a public financial institution under the Companies Act.
This will enable the government to strengthen the country’s infrastructure financing structures.
In a notification issued on September 10, the Ministry of Corporate Affairs said that the Central Government, in exercise of the powers under Section 2 of the Companies Act, 2013, in consultation with the Reserve Bank of India, hereby notifies the National Bank for Financing Infrastructure and Development as a “public financial institution”.
With this move, the bank increases its capacity to finance large-scale infrastructure projects, thereby boosting infrastructure development in the country.
NaBFID, a specialized development finance institution (DFI), was established by law in 2021 (The National Bank for Financing Infrastructure and Development Act, 2021).
The bank was established with the primary objective of filling the gap in long-term, non-recourse financing for infrastructure development, enhancing the development of bond and derivatives markets in India and providing a sustainable boost to the country’s economy.
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First publication: Sep 12, 2024 | 8:06 PM IST