NABARD and NaBFID sign MoU on rural infrastructure finance
Why in the news
Two development finance bodies agreed to work together so that rural projects get long-term funding.
Key facts
- Signatories: NABARD and NaBFID.
- Purpose: stronger cooperation in financing rural infrastructure projects.
- Sectors: water works, sanitation, irrigation and post-harvest storage facilities.
- Mode: joint financing and knowledge sharing for projects with significant rural impact.
| Area of cooperation | Examples |
|---|---|
| Water | Water infrastructure, irrigation |
| Health and hygiene | Sanitation |
| Farm support | Post-harvest storage facilities |
About NaBFID
- A specialised development finance institution.
- Set up to back long-term infrastructure finance.
Exam angle
- Full form to remember: NaBFID, a development finance institution for infrastructure.
- Focus: rural infrastructure.
- Type of document: initial agreement, an MoU.