HomeNotificationFinMin Notifies 0.1% Concessional Fee for Guarantees under NaBFID Rules Amendment

FinMin Notifies 0.1% Concessional Fee for Guarantees under NaBFID Rules Amendment

The Ministry of Finance has notified amendments to the National Bank for Financing Infrastructure and Development (NaBFID) General Rules, 2022, providing for a concessional rate of fees on government guarantees for specific foreign borrowings. 

The National Bank for Financing Infrastructure and Development General (Amendment) Rules, 2025, were published in the Official Gazette on Wednesday.

As per the notification, a new Rule 10 has been inserted which fixes a 0.1% concessional rate of government guarantee fees for borrowings raised by NaBFID from multilateral institutions, sovereign wealth funds, and other foreign institutions specified by the Central Government.

The rules further empower the government to reduce the concessional rate even below 0.1% for borrowings made for purposes mandated by the government. NaBFID will be required to submit a detailed request specifying the nature of borrowings, parties involved, and the intended use of funds to avail such a reduction.

The government guarantee fees will be payable at the time of obtaining the guarantee and subsequently every year on April 1. The notification also clarifies that these fees will be subject to other conditions imposed by the Central Government.

This amendment aims to make foreign borrowing by NaBFID more cost-effective and aligns with the institution’s mandate of financing large-scale infrastructure projects in India.

The original NaBFID General Rules, 2022, were published on January 28, 2022, and were previously amended on July 15, 2022.

Notification Details

Notification No. F. No. 15/10/2021

Date:  30th July, 2025

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Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
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