In News:

The National Bank for Financing Infrastructure and Development (NaBFID) has entered into a strategic Memorandum of Understanding (MoU) with the New Development Bank (NDB) to strengthen cooperation in long-term infrastructure financing and promote clean energy development in India.

About NaBFID (National Bank for Financing Infrastructure and Development)

• Type: Development Finance Institution (DFI)
• Established Under:NaBFID Act, 2021
• Regulated By: Reserve Bank of India (RBI) as an All-India Financial Institution (AIFI)

Objectives:

• Bridge the gap in long-term, non-recourse infrastructure finance
• Support the development of India’s bond and derivatives markets
• Foster sustainable economic growth
• Enable project financing in clean energy, transport, and water infrastructure

Key Features:

• Capital base to be scaled up to ?1 trillion
• Focuses on medium to long-term financing (1–5+ years)
• Promotes Public-Private Partnerships (PPPs) and financial viability of projects
• Engages in joint research, capacity building, and knowledge-sharing with global institutions like NDB

About the New Development Bank (NDB)

• Type: Multilateral Development Bank formed by BRICS nations (Brazil, Russia, India, China, South Africa)
• Proposed: BRICS Summit, New Delhi (2012)
• Established By:Fortaleza Declaration, 15 July 2014
• Became Operational: 21 July 2015

Mandate:

• Mobilize funds for infrastructure and sustainable development
• Finance projects in emerging and developing economies (EMDCs)
• Promote green, inclusive, and resilient growth, particularly in clean energy, transport, and water sectors

Key Features:

• Authorized Capital: $100 billion
• India’s Contribution: $2 billion (paid in 7 tranches, 2015–2022)
• Engagement in India: As of December 2024, NDB has financed 20 projects worth $4.867 billion