The news on DFI is trending nowadays as Finance Minister Nirmala Sitharaman has stated that “India will set up a new DFI called the “National Bank for Financing Infrastructure and Development ” while presenting in the Union Budget and passed the Bill for the same in Lok Sabha.
These Proposed DFI will be set up on a capital base of Rs. 20,000 crores and will have a lending target of Rs. 5 lakh crore in three years and will eventually start with 100% govt. ownership which will be brought down to 26% in later stages. A lot of amendments are made in the new DFIs in comparison to the old one which will make the structure more effective and efficient.
In this banking brief, we will talk about the Development Finance Institution in India, its history, and the reasons to its success in the future.