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NaBFID Infrastructure Financing Report to Finance Ministry

13 September 20251 min read
BANKING & FINANCENaBFIDInfrastructureFinancing Report toFinance Ministry13 September 2025safalsetu.com

Why in the news

NaBFID is to compile a report on obstacles in funding infrastructure and hand it to the finance ministry’s DFS within a fortnight.

Key facts

  • Body: National Bank for Financing Infrastructure and Development (NaBFID).
  • Report to: Department of Financial Services (DFS), Ministry of Finance.
  • Time limit: 15 days.

Issues discussed

  • Financing gaps: too little long-term infrastructure finance.
  • Municipal bonds: hurdles in issuing them and weak investor interest.
  • Capacity building: stronger institutions and skills needed.
  • Data gaps: better information on defaults and recoveries is needed to assess risk.

About NaBFID

  • Created under the NaBFID Act, 2021 as a Development Finance Institution.
  • Goal: supply long-term infrastructure finance and grow the bond and loan market.
  • Acts as a catalyst for private investment through credit enhancement, guarantees and innovative financing.

Exam angle

  • Legal basis: NaBFID Act, 2021.
  • Type of institution: DFI.
  • Nodal ministry for the report: Finance, via DFS.

Test yourself

1. Under which Act was NaBFID established?

NaBFID was created under the NaBFID Act, 2021 as a DFI.

2. To which department will NaBFID submit its infrastructure financing report?

The report goes to DFS, Ministry of Finance.

3. What type of institution is NaBFID?

The notes describe it as a Development Finance Institution.

This topic is part of Daily Current Affairs 12 September 2025 (13 topics).

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