Question: Which of the following facts are correct-
a) The National Bank for Financing Infrastructure and Development Bill, 2021 was introduced in the Lok Sabha on March 22, 2021.
b) The above bill seeks to establish the National Bank for Financing Infrastructure and Development.
c) Its objective is to support the development of long-term non-recourse infrastructure financing in India.
d) All of the above
Ans: d
Facts
- The National Bank for Financing Infrastructure and Development Bill, 2021 was introduced in the Lok Sabha on March 22, 2021.
- As per the bill government seeks to establish the National Bank for Financing Infrastructure and Development as the principal development financial institution (DFIs) for infrastructure financing.
- Its objective is to 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.
- 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.
About National Bank for Financing Infrastructure and Development (NBFID)
- NBFID: NBFID will be set up as a corporate body with authorised share capital of one lakh crore rupees. Shares of NBFID may be held by: (i) central government, (ii) multilateral institutions, (iii) sovereign wealth funds, (iv) pension funds, (v) insurers, (vi) financial institutions, (vii) banks, and (viii) any other institution prescribed by the central government. Initially, the central government will own 100% shares of the institution which may subsequently be reduced up to 26%.
- NBFID will have both financial as well as developmental objectives. Financial objectives will be to directly or indirectly lend, invest, or attract investments for infrastructure projects located entirely or partly in India. Central government will prescribe the sectors to be covered under the infrastructure domain. Developmental objectives include facilitating the development of the market for bonds, loans, and derivatives for infrastructure financing.
By kameshwar shukla
Reference: http://newsonair.com/Main-News-Details.aspx?id=412491