Economics • Banking & FinanceMedium
What is the primary statutory objective of establishing the 'National Bank for Financing Infrastructure and Development (NaBFID)' in India?
A. To act as the principal development financial institution for building long-term non-recourse infrastructure financing✓ Correct Answer
B. To provide microfinance loans exclusively to women self-help groups in rural districts
C. To regulate digital payment gateways and settle interbank retail transactions
D. To manage foreign exchange reserves and execute open market operations on behalf of the central bank
💡 Solution & Explanation
The National Bank for Financing Infrastructure and Development was enacted as a specialized development financial institution designed to catalyze long-term non-recourse infrastructure financing across India. Other choices misattribute this institutional mandate to microfinance programs, retail payment regulation, or foreign exchange management handled by separate entities.
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