National Bank for Financing Infrastructure and Development Bill, 2021

A new bill to set up a development financial institution (DFI) will be considered in the Budget Session of Parliament. DFI will provide funds for infrastructure projects.

Key Points

• The Budget Session of the Parliament will introduce a bill to set up the National Bank for Financing Infrastructure and Development (NaBFID).
• The provisions and details of the bill are not available but the session schedule notes for a law to set up the National Bank for Financing Infrastructure and Development.
• NaBFID will act as an infrastructure funding provider, enabler and catalyst.
• It will serve as the principal financial institution and development bank for creating an ecosystem for infrastructure funding.
• The NaBFID Bill is slated for introduction, consideration, and passing in this Budget session.

What is DFI?

A development finance institution (DFI) is an institute that is responsible for financing infrastructure projects that are of national importance.

With the aim to set up a DFI or NaBFID, India is going back to its experiment done with ICICI and IDBI. Both of them were established as DFIs and later converted into banks.

Budget Session of Parliament

The Budget session of Parliament started on January 29. The session will be held in 2 parts. The 1st part will end on February 15. The 2nd part will be held from March 8 to April 8.