RBI Urges NaBFID for Self-Sustainable Business Model

RBI Deputy Governor M Rajeshwar Rao urged NaBFID to develop a sustainable business model independent of government support. He emphasized the need for agile strategies, private sector involvement, and robust risk management. Rao hinted at new norms for project lending and emphasized the role of NaBFID in infrastructure development.

RBI Deputy Governor M Rajeshwar Rao on Thursday urged the National Bank for Financing Infrastructure and Development (NaBFID) to create a sustainable business model that doesn't rely on government support.

Addressing an event, Rao emphasized the importance of a self-sustainable model, stressing it should also avoid dependency on regulatory dispensations over the medium term.

Rao highlighted the need for agile strategies in institutions, focusing on government-prioritized sectors. He affirmed that the central bank has received feedback on project lending proposals and plans to release final norms soon. Rao also pointed out the necessity of private sector involvement in infrastructure investments, urging NaBFID to act as a catalyst.

(With inputs from agencies.)