NABFID – INDIA’s NEW D.F.I.

SHARE:

Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!

SHARE:

 NABFID – INDIA’s NEW D.F.I.

Read more on - Polity | Economy | Schemes | S&T | Environment


    • NABFID arrives: In Budget 2021-22, the Finance Minister had announced the setting up of a DFI. Now, the National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021 was brought to the Parliament, after cabinet clearance. The new institution is expected to bring in long-term capital, for the infrastructure development needs of India.
    • Capital to begin with: The DFI will get ?20,000 crore as equity capital from the government. With this, the institution will use it as lever to raise up to ? 3-lakh crore in the next few years. NABFID will start with an authorized capital of Rs.1 lakh crore, and the GoI wants it to have a portfolio of Rs.5 lakh crore in five years.
    • Infrastructure financing: Infrastructure needs long-term debt financing, and a professionally managed DFI is necessary to act as a provider, enabler and catalyst for infrastructure financing. 
      1. The new institution will have a board with at least 50 per cent non-official directors. 
      2. The chairman will be a person of repute in the field. 
      3. Emoluments will be as per the market standards, with performance incentives also.
      4. Higher age limit and longer tenure for MDs to be put in place,.
      5. The Board will be given power to take call on merging existing institution like IIFCL. 
      6. Initially the company will be 100 per cent government owned. Over a period, the government will gradually lower its equity, to a maximum of 26 per cent.
    • Tax benefits: The government hopes that due to tax benefits, and tweaks to the Indian Stamp Act, big pension and sovereign wealth funds will invest in NABFID. It is also planning to give a certain security to reduce the cost of funds. 
      1. NABFID has to attract investors in its key instruments. For that, it has to carefully select and bundle projects, and securitize them. Then, FIs and HNIs will arrive. Right tax incentives will help, as the 10-year income tax holiday on bonds announced already. 
      2. The DFI may not issue tax-free bonds but compensate the tax outgo of the institutions putting money in it. 
      3. A grant of ?5,000 crore is to be provided. The government will guarantee any overseas borrowing, and compensate the guarantee fee.
      4. The Sovereign Wealth Funds (SWFs) and other institutions who will be allowed to purchase equity in NABFID, will get a buyback option. If SWFs do come, their reputation will help improve NABFID's governance as well.
      5. The funds raised by the DFI will be used in infrastructure projects. The government has prepared the National Infrastructure Pipeline with an investment of ?111-lakh crore.
    • Indian bond markets: This will help deepen the bond markets also. NABFID will also work to deepen the bond market for infrastructure funding. It will both act as bond seller and market-maker in initial years. It will thus attract investors to the bond markets. 
    • Five yearly performance review: The NABFID will be performance-reviewed every 5 years, publicly. Salaries for top executives will be linked also to performance incentives, to attract the best talent even from private sector. 
    • History: For providing long term funds to industry, the government set up Industrial Finance Corporation in India (IFCI) in 1948. This was followed by a number of other development banks and institutions like the Industrial Credit and Investment Corporation of India (ICICI) in 1955, Industrial Development Bank of India (IDBI) in 1964, Industrial Reconstruction Corporation of India (IRCI) in 1971, Foreign Investment Promotion Board in 1991, Over the Counter Exchange of India (OTCEI) in 1992 etc. 
      1. With increasing reserve requirement and 'priority sector' lending targets at concessional interest rates, commercial banks reportedly could not meet the industrial sector's credit needs. So the DFIs (Development Finance Institutions) urged firms to raise capital from stock markets.
      2. By the 2000s, most DFIs turned into Commercial Banks, to access easy retail deposits. Again the issue of new DFIs came up in 2021!
                                                                                                                                                            Read more on - Polity | Economy | Schemes | S&T | Environment

                                                                                                                                                            PT's IAS Academy, PT education, IAS, CSE, UPSC, Prelims, Mains, exam coaching, exam prep, Civil Services test

                                                                                                                                                            * Content sourced from free internet sources (publications, PIB site, international sites, etc.). Take your own subscriptions. Copyrights acknowledged. 

                                                                                                                                                            COMMENTS

                                                                                                                                                            Name

                                                                                                                                                            01-01-2020,1,04-08-2021,1,05-08-2021,1,06-08-2021,1,28-06-2021,1,Abrahamic religions,6,Afganistan,1,Afghanistan,35,Afghanitan,1,Afghansitan,1,Africa,2,Agri tech,2,Agriculture,150,Ancient and Medieval History,51,Ancient History,4,Ancient sciences,1,April 2020,25,April 2021,22,Architecture and Literature of India,11,Armed forces,1,Art Culture and Literature,1,Art Culture Entertainment,2,Art Culture Languages,3,Art Culture Literature,10,Art Literature Entertainment,1,Artforms and Artists,1,Article 370,1,Arts,11,Athletes and Sportspersons,2,August 2020,24,August 2021,239,August-2021,3,Authorities and Commissions,4,Aviation,3,Awards and Honours,26,Awards and HonoursHuman Rights,1,Banking,1,Banking credit finance,13,Banking-credit-finance,19,Basic of Comprehension,2,Best Editorials,4,Biodiversity,46,Biotechnology,47,Biotechology,1,Centre State relations,19,CentreState relations,1,China,81,Citizenship and immigration,24,Civils Tapasya - English,92,Climage Change,3,Climate and weather,44,Climate change,60,Climate Chantge,1,Colonialism and imperialism,3,Commission and Authorities,1,Commissions and Authorities,27,Constitution and Law,467,Constitution and laws,1,Constitutional and statutory roles,19,Constitutional issues,128,Constitutonal Issues,1,Cooperative,1,Cooperative Federalism,10,Coronavirus variants,7,Corporates,3,Corporates Infrastructure,1,Corporations,1,Corruption and transparency,16,Costitutional issues,1,Covid,104,Covid Pandemic,1,COVID VIRUS NEW STRAIN DEC 2020,1,Crimes against women,15,Crops,10,Cryptocurrencies,2,Cryptocurrency,7,Crytocurrency,1,Currencies,5,Daily Current Affairs,453,Daily MCQ,32,Daily MCQ Practice,573,Daily MCQ Practice - 01-01-2022,1,Daily MCQ Practice - 17-03-2020,1,DCA-CS,286,December 2020,26,Decision Making,2,Defence and Militar,2,Defence and Military,281,Defence forces,9,Demography and Prosperity,36,Demonetisation,2,Destitution and poverty,7,Discoveries and Inventions,8,Discovery and Inventions,1,Disoveries and Inventions,1,Eastern religions,2,Economic & Social Development,2,Economic Bodies,1,Economic treaties,5,Ecosystems,3,Education,119,Education and employment,5,Educational institutions,3,Elections,37,Elections in India,16,Energy,134,Energy laws,3,English Comprehension,3,Entertainment Games and Sport,1,Entertainment Games and Sports,33,Entertainment Games and Sports – Athletes and sportspersons,1,Entrepreneurship and startups,1,Entrepreneurships and startups,1,Enviroment and Ecology,2,Environment and Ecology,228,Environment destruction,1,Environment Ecology and Climage Change,1,Environment Ecology and Climate Change,458,Environment Ecology Climate Change,5,Environment protection,12,Environmental protection,1,Essay paper,643,Ethics and Values,26,EU,27,Europe,1,Europeans in India and important personalities,6,Evolution,4,Facts and Charts,4,Facts and numbers,1,Features of Indian economy,31,February 2020,25,February 2021,23,Federalism,2,Flora and fauna,6,Foreign affairs,507,Foreign exchange,9,Formal and informal economy,13,Fossil fuels,14,Fundamentals of the Indian Economy,10,Games SportsEntertainment,1,GDP GNP PPP etc,12,GDP-GNP PPP etc,1,GDP-GNP-PPP etc,20,Gender inequality,9,Geography,10,Geography and Geology,2,Global trade,22,Global treaties,2,Global warming,146,Goverment decisions,4,Governance and Institution,2,Governance and Institutions,773,Governance and Schemes,221,Governane and Institutions,1,Government decisions,226,Government Finances,2,Government Politics,1,Government schemes,358,GS I,93,GS II,66,GS III,38,GS IV,23,GST,8,Habitat destruction,5,Headlines,22,Health and medicine,1,Health and medicine,56,Healtha and Medicine,1,Healthcare,1,Healthcare and Medicine,98,Higher education,12,Hindu individual editorials,54,Hinduism,9,History,216,Honours and Awards,1,Human rights,249,IMF-WB-WTO-WHO-UNSC etc,2,Immigration,6,Immigration and citizenship,1,Important Concepts,68,Important Concepts.UPSC Mains GS III,3,Important Dates,1,Important Days,35,Important exam concepts,11,Inda,1,India,29,India Agriculture and related issues,1,India Economy,1,India's Constitution,14,India's independence struggle,19,India's international relations,4,India’s international relations,7,Indian Agriculture and related issues,9,Indian and world media,5,Indian Economy,1248,Indian Economy – Banking credit finance,1,Indian Economy – Corporates,1,Indian Economy.GDP-GNP-PPP etc,1,Indian Geography,1,Indian history,33,Indian judiciary,119,Indian Politcs,1,Indian Politics,637,Indian Politics – Post-independence India,1,Indian Polity,1,Indian Polity and Governance,2,Indian Society,1,Indias,1,Indias international affairs,1,Indias international relations,30,Indices and Statistics,98,Indices and Statstics,1,Industries and services,32,Industry and services,1,Inequalities,2,Inequality,103,Inflation,33,Infra projects and financing,6,Infrastructure,252,Infrastruture,1,Institutions,1,Institutions and bodies,267,Institutions and bodies Panchayati Raj,1,Institutionsandbodies,1,Instiutions and Bodies,1,Intelligence and security,1,International Institutions,10,international relations,2,Internet,11,Inventions and discoveries,10,Irrigation Agriculture Crops,1,Issues on Environmental Ecology,3,IT and Computers,23,Italy,1,January 2020,26,January 2021,25,July 2020,5,July 2021,207,June,1,June 2020,45,June 2021,369,June-2021,1,Juridprudence,2,Jurisprudence,91,Jurisprudence Governance and Institutions,1,Land reforms and productivity,15,Latest Current Affairs,1136,Law and order,45,Legislature,1,Logical Reasoning,9,Major events in World History,16,March 2020,24,March 2021,23,Markets,182,Maths Theory Booklet,14,May 2020,24,May 2021,25,Meetings and Summits,27,Mercantilism,1,Military and defence alliances,5,Military technology,8,Miscellaneous,454,Modern History,15,Modern historym,1,Modern technologies,42,Monetary and financial policies,20,monsoon and climate change,1,Myanmar,1,Nanotechnology,2,Nationalism and protectionism,17,Natural disasters,13,New Laws and amendments,57,News media,3,November 2020,22,Nuclear technology,11,Nuclear techology,1,Nuclear weapons,10,October 2020,24,Oil economies,1,Organisations and treaties,1,Organizations and treaties,2,Pakistan,2,Panchayati Raj,1,Pandemic,137,Parks reserves sanctuaries,1,Parliament and Assemblies,18,People and Persoalities,1,People and Persoanalities,2,People and Personalites,1,People and Personalities,189,Personalities,46,Persons and achievements,1,Pillars of science,1,Planning and management,1,Political bodies,2,Political parties and leaders,26,Political philosophies,23,Political treaties,3,Polity,485,Pollution,62,Post independence India,21,Post-Governance in India,17,post-Independence India,46,Post-independent India,1,Poverty,46,Poverty and hunger,1,Prelims,2054,Prelims CSAT,30,Prelims GS I,7,Prelims Paper I,189,Primary and middle education,10,Private bodies,1,Products and innovations,7,Professional sports,1,Protectionism and Nationalism,26,Racism,1,Rainfall,1,Rainfall and Monsoon,5,RBI,73,Reformers,3,Regional conflicts,1,Regional Conflicts,79,Regional Economy,16,Regional leaders,43,Regional leaders.UPSC Mains GS II,1,Regional Politics,149,Regional Politics – Regional leaders,1,Regionalism and nationalism,1,Regulator bodies,1,Regulatory bodies,63,Religion,44,Religion – Hinduism,1,Renewable energy,4,Reports,102,Reports and Rankings,119,Reservations and affirmative,1,Reservations and affirmative action,42,Revolutionaries,1,Rights and duties,12,Roads and Railways,5,Russia,3,schemes,1,Science and Techmology,1,Science and Technlogy,1,Science and Technology,819,Science and Tehcnology,1,Sciene and Technology,1,Scientists and thinkers,1,Separatism and insurgencies,2,September 2020,26,September 2021,444,SociaI Issues,1,Social Issue,2,Social issues,1308,Social media,3,South Asia,10,Space technology,70,Startups and entrepreneurship,1,Statistics,7,Study material,280,Super powers,7,Super-powers,24,TAP 2020-21 Sessions,3,Taxation,39,Taxation and revenues,23,Technology and environmental issues in India,16,Telecom,3,Terroris,1,Terrorism,103,Terrorist organisations and leaders,1,Terrorist acts,10,Terrorist acts and leaders,1,Terrorist organisations and leaders,14,Terrorist organizations and leaders,1,The Hindu editorials analysis,58,Tournaments,1,Tournaments and competitions,5,Trade barriers,3,Trade blocs,2,Treaties and Alliances,1,Treaties and Protocols,43,Trivia and Miscalleneous,1,Trivia and miscellaneous,43,UK,1,UN,114,Union budget,20,United Nations,6,UPSC Mains GS I,584,UPSC Mains GS II,3969,UPSC Mains GS III,3071,UPSC Mains GS IV,191,US,63,USA,3,Warfare,20,World and Indian Geography,24,World Economy,404,World figures,39,World Geography,23,World History,21,World Poilitics,1,World Politics,612,World Politics.UPSC Mains GS II,1,WTO,1,WTO and regional pacts,4,अंतर्राष्ट्रीय संस्थाएं,10,गणित सिद्धान्त पुस्तिका,13,तार्किक कौशल,10,निर्णय क्षमता,2,नैतिकता और मौलिकता,24,प्रौद्योगिकी पर्यावरण मुद्दे,15,बोधगम्यता के मूल तत्व,2,भारत का प्राचीन एवं मध्यकालीन इतिहास,47,भारत का स्वतंत्रता संघर्ष,19,भारत में कला वास्तुकला एवं साहित्य,11,भारत में शासन,18,भारतीय कृषि एवं संबंधित मुद्दें,10,भारतीय संविधान,14,महत्वपूर्ण हस्तियां,6,यूपीएससी मुख्य परीक्षा,91,यूपीएससी मुख्य परीक्षा जीएस,117,यूरोपीय,6,विश्व इतिहास की मुख्य घटनाएं,16,विश्व एवं भारतीय भूगोल,24,स्टडी मटेरियल,266,स्वतंत्रता-पश्चात् भारत,15,
                                                                                                                                                            ltr
                                                                                                                                                            item
                                                                                                                                                            PT's IAS Academy: NABFID – INDIA’s NEW D.F.I.
                                                                                                                                                            NABFID – INDIA’s NEW D.F.I.
                                                                                                                                                            Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!
                                                                                                                                                            https://blogger.googleusercontent.com/img/a/AVvXsEg09JB9uONXhEfJYtA07tfETAkvoxMPx7gXlOiSIIu8S3iW1LJu7iWruYzm55RPnkGaHK-qJ3yAARtPeAxlvYTi2-sL4-xhU06IswOeApAbFqLjMKoGPoSP2o9JRfJfSD_I87-YnvNyFBHb76kQAvPhn4Iea-G_Y-qp7cpfk5Sk3NOXsiEYMxitbZb9yQ=s16000
                                                                                                                                                            https://blogger.googleusercontent.com/img/a/AVvXsEg09JB9uONXhEfJYtA07tfETAkvoxMPx7gXlOiSIIu8S3iW1LJu7iWruYzm55RPnkGaHK-qJ3yAARtPeAxlvYTi2-sL4-xhU06IswOeApAbFqLjMKoGPoSP2o9JRfJfSD_I87-YnvNyFBHb76kQAvPhn4Iea-G_Y-qp7cpfk5Sk3NOXsiEYMxitbZb9yQ=s72-c
                                                                                                                                                            PT's IAS Academy
                                                                                                                                                            https://civils.pteducation.com/2021/10/UPSC-IAS-exam-preparation-NABFID-INDIAs-NEW-D-F-I.html
                                                                                                                                                            https://civils.pteducation.com/
                                                                                                                                                            https://civils.pteducation.com/
                                                                                                                                                            https://civils.pteducation.com/2021/10/UPSC-IAS-exam-preparation-NABFID-INDIAs-NEW-D-F-I.html
                                                                                                                                                            true
                                                                                                                                                            8166813609053539671
                                                                                                                                                            UTF-8
                                                                                                                                                            Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow TO READ FULL BODHI... Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy