NATIONAL BANK FOR FINANCIAL INFRASTRUCTURE & DEVELOPMENT
- March 26, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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NATIONAL BANK FOR FINANCIAL INFRASTRUCTURE & DEVELOPMENT
Subject : National organisations / Legislations
Context : Parliament passes bill to set up National Bank for Financing Infrastructure and Development.
Concept :
- The NaBFID Bill, 2021 was introduced in Lok Sabha on March 22, 2021.
- The Bill seeks to establish the National Bank for Financing Infrastructure and Development (NBFID) as the principal development financial institution (DFIs) for infrastructure financing.
What are DFIs?
- DFIs are set up for providing long-term finance for such segments of the economy where the risks involved are beyond the acceptable limits of commercial banks and other ordinary financial institutions.
- Unlike banks, DFIs do not accept deposits from people.
- They source funds from the market, government, as well as multi-lateral institutions, and are often supported through government guarantees.