The Insurance and Regulatory Development Authority of India (IRDAI) has issued a circular on Investments in National Bank for Financing Infrastructure and Development (NaBFID). This circular was issued on 5th June, 2023.
The circular states that NaBFID has been officially established in India under the National Bank for Financing Infrastructure and Development Act of 2021. This institution aims to provide crucial support for the development of long-term non-recourse infrastructure financing in the country.
NaBFID will also focus on the growth and enhancement of bonds and derivatives markets, which are essential for infrastructure financing. Additionally, the bank will engage in the business of financing infrastructure and address matters related to it.
Pertinently, NaBFID falls under the regulatory purview of the Reserve Bank of India (RBI) as an All India Financial Institution.
Given that NaBFID is established as a Development Financial Institution dedicated to promoting long-term infrastructure financing, the exposure limits for investments in this entity will be determined in accordance with the prescribed limits for Public Limited Infrastructure Investee Companies.
