Bill in the works to have two sets of DFIs: Govt and private

Currently, some entities are working as a kind of DFI in their niche areas such as Indian Railway Finance Corporation, National Bank for Agriculture and Rural Development, and Small Industries Develop

There are likely to be two sets of development financial institutions (DFIs) — one, fully-owned by the government, and the other, by private sector entities. The legislation to this effect is being prepared by the finance ministry.  

The government-owned DFI will be completely owned by the Centre initially, and it can reduce its stake eventually to 26 per cent.

“So, there are two things – one, this is initially a government DFI, and over a period of time here also, some private partners should come. Second, the new legislation does not stop any private person or entity to set up