NaBFID to Become Global Infrastructure Development Bank

1. What is NaBFID?
NaBFID stands for National Bank for Financing Infrastructure and Development.
It was created in 2021 under the NaBFID Act, 2021.
It is a 100% government-owned bank, and it works as an All-India Financial Institution (AIFI) under the RBI Act, 1934.

NaBFID to Become Global Infrastructure Development Bank: Key Highlights

Main Purpose:

• To give long-term loans for big infrastructure projects.
• To refinance old infrastructure loans.
• To attract private investment in infrastructure.

2. Upcoming Changes:

• The government plans to rename NaBFID as Infrastructure Development Bank (IDB).
• It will also get a new logo and brand identity.
• This change shows India’s aim to make the bank global, not just domestic.

3. Global Role:
After the change, IDB will:

• Finance cross-border (international) infrastructure projects.
• Raise funds internationally and follow global standards.
• Work with international DFIs like ADB (Asian Development Bank) and IFC (International Finance Corporation).
• Increase India’s global influence in infrastructure financing.

4. Domestic Importance:

• It supports India’s plan to make infrastructure a key driver of growth.
• Connects with the National Infrastructure Pipeline (NIP).
• Shows India’s focus on long-term capital and specialised institutions for big projects.

Question & Answer

Q1. When was the National Bank for Financing Infrastructure and Development (NaBFID) established?
(a) 2019
(b) 2020
(c) 2021
(d) 2022
Answer: 2021
Explanation: NaBFID was created under the NaBFID Act, 2021 as India’s development finance institution for infrastructure.

Q2. What will be the new name of NaBFID?
(a) Infrastructure Growth Bank
(b) Infrastructure Development Bank (IDB)
(c) National Development Bank
(d) India Infrastructure Bank
Answer: Infrastructure Development Bank (IDB)
Explanation: The government plans to rename NaBFID as the Infrastructure Development Bank (IDB) to reflect its global role.

Q3. Under which Act is NaBFID classified as an All-India Financial Institution (AIFI)?
(a) Companies Act, 2013
(b) RBI Act, 1934
(c) Banking Regulation Act, 1949
(d) DFI Act, 2021
Answer: RBI Act, 1934
Explanation: NaBFID is listed as an AIFI under the Reserve Bank of India Act, 1934.

Q4. Which of the following institutions are considered NaBFID’s global peers?
(a) World Bank and IMF
(b) ADB and IFC
(c) NABARD and SIDBI
(d) EXIM Bank and SBI
Answer: ADB and IFC
Explanation: The Infrastructure Development Bank aims to work at a global level like the Asian Development Bank (ADB) and the International Finance Corporation (IFC).

Q5. What is the main goal behind converting NaBFID into a global bank?
(a) To support agriculture financing
(b) To engage in cross-border infrastructure financing
(c) To promote digital banking
(d) To control inflation
Answer: To engage in cross-border infrastructure financing
Explanation: The new IDB will work globally by funding international infrastructure projects and raising capital worldwide.

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