The National Bank for Financing Infrastructure and Development Act, 2021

(1) This Act may be called the National Bank forFinancing Infrastructure and Development Act, 2021. (2) It extends to the whole of India. (3) It shall come into force on such date1as the Central Government may, by notification in theOfficial Gazette, appoint and different dates may be appointed for different provisions of this Act and anyreference in any provision to the commencement of this Act shall be construed as a reference to thecoming into force of that provision.

(1) In this Act, unless the context otherwise requires,-- (a) "Audit Committee" means the Audit Committee of the Board constituted under sub-section(1) of section 15; (b) "Board" means the Board of Directors constituted under section 6; (c) "Bureau" means a body which the Central Government may notify, for the purpose ofrecommending candidates for appointment of Managing Director and Deputy Managing Directorsunder sub-section (1) of section 6 and for removal of a director under clause (ii) of sub-section (1) ofsection 11; (d) "Chairperson" means the Chairperson of the Board appointed under clause (a) of sub-section(1) of section 6; (e) "committee" means a committee of the Board constituted under section 15; (f) "Deputy Managing Director" means the Deputy Managing Director appointed under clause (c)of sub-section (1) of section 6; (g) "director" includes a Chairperson, Managing Director, Deputy Managing Directors and otherdirectors of the Board appointed or nominated under section 6; (h) "Executive Committee" means the Executive Committee of the Board constituted under subsection (2) of section 15; (i) "financial institution" shall have the meaning assigned to it in clause (m) of sub-section (1) ofsection 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (54 of 2002); (j) "independent director" means the independent director of the Board appointed under clause (f)of sub-section (1) of section 6; (k) "infrastructure" means the sectors covered in the list of infrastructure sector notified by theCentral Government from time to time; (l) "Institution" means the National Bank for Financing Infrastructure and Developmentestablished under section 3; (m) "insurer" shall have the meaning assigned to it in sub-section (9) of section 2 of the InsuranceAct, 1938 (4 of 1938); (n) "Managing Director" means the director appointed under clause (b) of sub-section (1) ofsection 6; (o) "Nomination and Remuneration Committee" means the Nomination and RemunerationCommittee of the Board constituted under sub-section (1) of section 15; (p) "notification" means a notification published in the Official Gazette and the expression"notify" shall be construed accordingly; (q) "pension fund" shall have the meaning assigned to it in clause (l) of sub-section (1) of section2 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013); (r) "prescribed" means prescribed by rules made under this Act by the Central Government; (s) "regulations" means regulations made by the Board under this Act and includes theregulations made by the Reserve Bank under section 29; (t) "Reserve Bank" means the Reserve Bank of India established under the Reserve Bank of IndiaAct, 1934 (2 of 1934); (u) "Risk Management Committee" means the Risk Management Committee of the Boardconstituted under sub-section (1) of section 15; (v) "Schedule" means a Schedule appended to this Act. (2) Words and expressions used but not defined in this Act but defined in the Indian Contract Act,1872 (9 of 1872), the Indian Partnership Act, 1932 (9 of 1932), the Securities Contracts (Regulation) Act,1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Recovery ofDebts Due to Banks and Financial Institutions Act, 1993 (51 of 1993), the Limited Liability PartnershipAct, 2008 (6 of 2009) and the Companies Act, 2013 (18 of 2013), shall have the meanings respectivelyassigned to them in those Acts.

(1) There shall be established, for thepurposes of this Act, an Institution to be called the National Bank for Financing Infrastructure andDevelopment as a development financial institution. (2) The Institution shall be a body corporate by the name aforesaid, having perpetual succession and acommon seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property,both movable and immovable, and to contract, and shall, by the said name, sue or be sued. (3) The head office of the Institution shall be in Mumbai. (4) The Institution may establish offices, branches or agencies at any place within or outside India.

(1) The Institution shall have developmental andfinancial objectives as set out in sub-sections (2) and (3). (2) The developmental objective of the Institution shall be to co-ordinate with the Central and StateGovernments, regulators, financial institutions, institutional investors and such other relevantstakeholders, in India or outside India, to facilitate building and improving the relevant institutions tosupport the development of long term non-recourse infrastructure financing in India including thedomestic bonds and derivatives markets. (3) The financial objective of the Institution shall be to lend or invest, directly or indirectly, and seekto attract investment from private sector investors and institutional investors, in infrastructure projectslocated in India, or partly in India and partly outside India, with a view to foster sustainable economicdevelopment in India.

(1) The authorised share capital of the Institution shall be one hundredthousand crore rupees divided into ten thousand crores of fully paid-up shares of ten rupees each:Provided that the Board may increase or reduce the nominal or face value of the shares, and divide theauthorised capital into such denomination as it may decide: Provided further that the Board may, in consultation with the Central Government, increase or reducethe authorised capital subject to the shares in all cases being fully paid-up shares. (2) The issued share capital of the Institution shall, on such date as may be notified by the CentralGovernment, stand allotted to the Central Government. (3) Shares of the Institution may be held by the Central Government, multilateral institutions,sovereign wealth funds, pension funds, insurers, financial institutions, banks, and any such institution asmay be prescribed: Provided that the Central Government shall hold at least twenty-six per cent. of the shares of theInstitution at all times. (4) The Board may, with the prior approval of the Central Government, reduce its share capital,including by way of buy-back of shares.