NaBFID is set to establish a self-regulatory organisation for infrastructure lenders within a month, aiming to unify sector concerns and strengthen the role of India’s infrastructure financing ecosystem.
NaBFID has cleared the way to launch a self-regulatory organisation for infrastructure financiers, with managing director Rajkiran Rai G saying the body should be up and running within a month.
Rai said the bank has already secured the necessary approvals and is now working through the procedural steps needed to set up the entity, which will itself be constituted as a company. The proposed group is intended to give infrastructure lenders a shared forum to raise sector-wide concerns with regulators and government ministries.
The plan has been under discussion for some time. ETBFSI reported last month that NaBFID was exploring the idea after conversations about creating a platform that could represent infrastructure lenders more formally. According to the earlier report, the bank has already held two meetings with lenders and is looking at an initial membership of about 15, with scope to expand later.
In an earlier report, ETBFSI said NaBFID was also seeking clarity from the Reserve Bank of India on whether banks and non-bank lenders could be included together, given current rules around self-regulatory bodies. The latest comments suggest the institution has now moved past the approval stage and is focusing on incorporation and other formalities.
The effort fits with NaBFID’s broader push to play a larger role in India’s infrastructure finance system. The bank was set up in 2021 to address gaps in long-term project funding, and recent commentary from the Reserve Bank has stressed the importance of strong post-disbursement monitoring if the institution is to avoid the weaknesses that affected earlier development finance models. Rai has also described NaBFID as a key lender for large toll roads, data centres and renewable energy projects.
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