Parliament passes ‘National Bank for Financing Infrastructure and Development Bill, 2021’ - (23 Mar 2021)

Banking

Parliament passes “National Bank for Financing Infrastructure and Development Bill, 2021” (NBFID Bill) to establish a National Bank for Financing Infrastructure and Development and to support ‘infrastructure financing’ across the Nation. The bill would support the development of long term non-recourse infrastructure financing in India including development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure.

The developmental objective of the Institution shall be to co-ordinate with the Central and State Governments, regulators, financial institutions, institutional investors and such other relevant stakeholders, in India or outside India, to facilitate building and improving the relevant institutions to support the development of long term non-recourse infrastructure financing in India including the domestic bonds and derivatives markets. The financial objective of the Institution shall be to lend or invest, directly or indirectly, and seek to attract investment from private sector investors and institutional investors, in infrastructure projects located in India, or partly in India and partly outside India, with a view to foster sustainable economic development in India.

NBFID would work as a principal development financial institution (DFIs). Shares of NBFID is to be held by the Central Government, multilateral institutions, sovereign wealth funds, pension funds, insurers, financial institutions and banks and other institution as prescribed by Central Government. The authorised share capital of the Institution shall be one hundred thousand crore rupees divided into ten thousand crores of fully paid-up shares of ten rupees.

Tags : NATIONAL BANK FINANCIAL INFRASTRUCTURE BILL