Government Notifies NaBFID as Public Financial Institution to Boost Infrastructure

The government has designated the National Bank for Financing Infrastructure and Development (NaBFID) as a public financial institution under the Companies Act. This move, officially announced on September 10, aims to strengthen infrastructure financing in India. NaBFID will now be better equipped to fund large-scale projects, aiding in the country's overall economic development.

The government has taken a significant step to enhance the nation's infrastructure financing by notifying the National Bank for Financing Infrastructure and Development (NaBFID) as a public financial institution under the Companies Act.

This announcement was made through a notification issued on September 10 by the Corporate Affairs Ministry. The notification, issued in consultation with the Reserve Bank of India, aims to empower NaBFID to undertake large-scale infrastructure projects, thereby bolstering the country's infrastructure development.

Established in 2021 under the National Bank for Financing Infrastructure and Development Act, NaBFID was created to address gaps in long-term financing for infrastructure projects, strengthen the development of bonds and derivatives markets, and support sustainable economic growth in India.

(With inputs from agencies.)