Centre Notifies Concessional Guarantee Fee for Borrowings by Infrastructure Bank from Global Institutions



Quick Summary
The Indian government has introduced a significantly reduced guarantee fee of just 0.1% for borrowings made by the National Bank for Financing Infrastructure and Development (NaBFID) from international institutions like multilateral bodies and sovereign wealth funds. This move, detailed in an amendment to the NaBFID General Rules, 2022, aims to make it easier and cheaper for NaBFID to access foreign capital. By lowering borrowing costs, the government intends to strengthen NaBFID's capacity to finance crucial infrastructure projects across the country.

The Ministry of Finance has issued a key notification under the National Bank for Financing Infrastructure and Development Act, 2021, introducing concessional government guarantee fees to support the financial strength of the country's premier development finance institution, NaBFID. As per G.S.R. 514(E), published in the Official Gazette on July 30, 2025, the Central Government has amended the National Bank for Financing Infrastructure and Development General Rules, 2022, through the National
Daily Limit Reached

You have reached your daily limit of 2 Free News

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Community
  • Daily E-Newsletter
  • Unlimited News Access
  • Profile Visitors
  • Link Social Profiles
  • Featured Job Posts
  • Pro Badge
  • Expert GST Guidance
  • Unlimited Forum Replies
  • Download Content in PDF
1 Year PLAN - Rs.1999
1799
(Excl. of GST ₹323)

2 Years PLAN - Rs.3499
3149
(Excl. of GST ₹566)

BEST VALUE
3 Years PLAN - Rs.4999
4499
(Excl. of GST ₹809)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

The new concessional government guarantee fee for borrowings by NaBFID from specified international institutions is 0.1% annually.

NaBFID can borrow from multilateral institutions, sovereign wealth funds, and other foreign institutions specified by the government.

The reduced fee aims to facilitate NaBFID's access to low-cost foreign capital, thereby enhancing its ability to fund critical infrastructure projects.

The notification, G.S.R. 514(E), was published in the Official Gazette on July 30, 2025.

Yes, the Central Government has the power to further reduce this concessional fee for borrowings aligned with purposes mandated by the Central Government.

NaBFID must submit a detailed request outlining borrowing terms, parties involved, and the intended use of funds.

Attached File : 671907_25168_265098.pdf



News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :


More »

Popular News





CCI Pro



Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details