Context:
NaBFID recently undertook non-deal investor meetings in Hong kong in preparation to issue its first offshore bond.
National Bank for Financing Infrastructure and Development (NaBFID):
- A specialized Development Finance Institution (DFI) in India.
- Established in 2021 under the National Bank for Financing Infrastructure and Development Act, 2021.
- Aims to boost infrastructure financing and strengthen the bond and derivatives market.
- Objectives –
- Address gaps in long-term financing for infrastructure projects.
- Enhance credit flow through structured financial instruments.
- Develop the bond and derivatives market in India.
- Support sustainable economic growth by financing large-scale infrastructure projects.
- Regulated by RBI as an All India Financial Institution (AIFI).
- Owned by the Government of India.
- Functions & Role –
- Provides long-term finance for infrastructure projects.
- Facilitates credit enhancement for corporate bonds in the infrastructure sector.
- Supports public-private partnerships (PPP) in infrastructure development.
- Encourages foreign and domestic investments in infrastructure.
Development Finance Institutions (DFIs):
- DFIs are government-backed institutions that provide long-term financing for large-scale projects.
- They do not accept deposits but raise funds through government borrowing, insurance companies, pension funds, and sovereign funds.
- DFIs also offer technical assistance like project viability studies and consultancy services.
Source: ET
Previous Year Question
Which one of the following links all the ATMs in India?
[UPSC Civil Service Exam – 2018 Prelims]
(a) Indian Banks’ Association
(b) National Securities Depository Limited
(c) National Payments Corporation of India
(d) Reserve Bank of India
Answer: (c)