Why in News?
The National Bank for Agriculture and Rural Development (NABARD) and the National Bank for Financing Infrastructure and Development (NaBFID) have signed a Memorandum of Understanding (MoU) to support infrastructure projects that can create a significant impact in rural areas.
Key Highlights
- The partnership brings together NABARD’s experience in rural and agricultural infrastructure and NaBFID’s expertise in long-term infrastructure financing.
- Under the agreement, the two institutions will work together on joint financing, knowledge sharing and innovative financing solutions for rural infrastructure projects. The focus will be on making long-term finance available at competitive rates for projects that can strengthen rural infrastructure and improve agricultural and related value chains.
- The collaboration will also cover capacity building and value-chain financing through the institutions’ respective training and development platforms.
- According to NABARD Chairman Shaji Krishnan V, rural infrastructure has both social and commercial importance. He said the partnership could help reduce the rural-urban gap and contribute to greater prosperity in rural areas.