The partnership brings together NABARD’s deep expertise in rural and agricultural infrastructure with NaBFID’s specialised capabilities in infrastructure financing
FinTech BizNews Service
Mumbai, 26 August 2026: 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 strengthen collaboration in financing infrastructure projects with significant rural impact.
The partnership brings together NABARD’s deep expertise in rural and agricultural infrastructure with NaBFID’s specialised capabilities in infrastructure financing. The MoU provides a framework for joint financing, knowledge sharing and the development of innovative financing solutions, with a focus on expanding access to long-term, competitively priced finance for projects that can strengthen rural infrastructure and value chains. The MoU was signed in the presence of Ms Monika Kalia, Deputy Managing Director and Chief Financial Officer, NaBFID, Mr Goverdhan S. Rawat and Dr Ajay K. Sood, Deputy Managing Directors, NABARD, along with other senior colleagues from both the institutions.
Dr Shaji Krishnan V., Chairman, NABARD, said: “Rural infrastructure itself has both a social and a commercial dimension. Our role has been to fund financially sustainable, market-based structures, and this partnership lets us work together on value-chain financing, on capacity building through our respective training institutions, and on both the liability and asset sides of our business. I am confident this collaboration can help bridge the rural-urban divide and advance rural prosperity, which remains an important national priority. This MoU is a good starting point, and we look forward to working together towards that larger goal.”
Speaking on the partnership, Shri Rajkiran Rai G, Managing Director, NaBFID, said : “NABARD brings deep, long-standing expertise in the rural sector, and rural infrastructure is emerging as a key driver of economic growth. This collaboration reflects the natural synergy between the two institutions. There is a real opportunity to design commercially viable, bankable projects in areas such as food processing, storage and cold-chain connectivity, and in doing so, contribute meaningfully to raising farmer incomes and strengthening India’s rural economy.”
Under the partnership, NABARD and NaBFID will explore funding arrangements and infrastructure advisory services across the project lifecycle. This will include project identification, appraisal and due diligence, credit structuring and pricing, as well as joint monitoring. The two institutions will also collaborate on advisory services, including project structuring, financial modelling and debt syndication. Joint capacity-building initiatives will draw on the respective training institutions of NABARD and NaBFID, supporting knowledge exchange and strengthening capabilities in infrastructure financing.
The collaboration will cover Public Private Partnership (PPP) projects and agri-value chains, as well as infrastructure with strong rural linkages. Key areas include water and sanitation, irrigation, post-harvest storage and cold-chain facilities, terminal markets, rural roads and bridges, warehousing and compressed biogas. These areas are critical to building resilient and future-ready rural infrastructure in line with the vision of Viksit Bharat.
The partnership aims to facilitate greater availability of long-term finance for rural infrastructure and allied value chains, supporting commercially viable projects, improving connectivity and market access, and contributing to higher rural incomes. By combining their respective strengths, NABARD and NaBFID aim to support sustainable rural development and contribute to narrowing the rural-urban divide.
