SIDBI invites bids from consultants to help set up Rs 20K-crore NaBFID

  • Published
    8th Jun, 2021

GS-III: Economy

  • Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Context

SIDBI on behalf of the government has floated Request for Proposal (RFP) inviting bids from consultants to help set up Rs 20,000 crore DFI called National Bank for Financing Infrastructure and Development (NaBFID) to catalyse investment in fund-starved infrastructure sector.

Prelims question:

Consider the following statements regarding the National Bank for Financing Infrastructure and Development Bill, 2021:

  1. The Bill seeks to establish the National Bank for Financing Infrastructure and Development as the principal development financial institution (DFIs) for infrastructure financing.
  2. Only the central government can own 100% shares of the institution.
  3. NBFID can raise money in the form of loans or otherwise only in Indian rupees.
  4. The Bill also provides for any person to set up a DFI by applying to RBI.

Which of the above statements are correct?

  • A.
  • B.
  • C.
  • D.

Mains Question:

The limitations of commercial banks and other ordinary financial institutions in providing long-term finance to the infrastructure has led to the passing of National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021. Elucidate. (250 words)

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