New Delhi: The Union Cabinet met on Tuesday under the leadership of PM Narendra Modi. The cabinet has decided to set up a new national bank, which will work to fund large infrastructure projects. It has been named as 'Development Finance Institute' to the bank. Briefing reporters in the press briefing, Union Finance Minister Nirmala Sitharaman said, the government had announced the setting up of a bank in the budget which has now been approved by the Cabinet.

According to the finance minister, the Financial Development Institute will undertake to fund the ongoing major infrastructure project in the country. According to the government, the new institution will be launched at absolutely zero. A board will be formed now, which will take further decisions. However, an initial fund of Rs 20,000 crore will be provided by the government. The press was informed that the bank will issue bonds and invest in them. It is expected to raise Rs 3 lakh crore in the coming few years. Those who invest in it will also get tax benefits. Large sovereign funds, pension funds can invest in it.

The press briefing has informed that no old bank was ready to fund such a large project. There are about 6000 green-brown field projects that need funding. That is why the decision of such an institution has been taken. According to the government, the bank's board members will be ranked by the big people of the area.

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