Current Affairs · Economic Institutions and Policies
The National Bank for Financing Infrastructure and Development (NaBFID) was established as a statutory development financial institution under the NaBFID Act, 2021. Which statement accurately describes its government ownership framework and the initial financial grant support provided by the Central Government to enhance viability?
- 1The Reserve Bank of India holds 50 percent of the shares while the Central Government holds the remaining 50 percent and provides an annual grant of 1,000 crore rupees for operational expenses.
- 2The Central Government holds 100 percent of the shares which may be reduced down to 51 percent, and the government provided a grant of 5,000 crore rupees to reimburse the cost of funds and support foreign exchange hedging.✓
- 3The initial shareholding of the Central Government is 100 percent but can be diluted to 26 percent and the government provided a grant of 5,000 crore rupees to be utilized strictly for interest subsidies.
- 4The Central Government holds 100 percent of the shares which can never be diluted below 51 percent and provided a one-time grant of 10,000 crore rupees to cover administrative costs.
Correct answer
The Central Government holds 100 percent of the shares which may be reduced down to 51 percent, and the government provided a grant of 5,000 crore rupees to reimburse the cost of funds and support foreign exchange hedging.
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