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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.
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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.
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