The Rural Infrastructure Development Fund (RIDF) was established by the Government of India in 1995-96 and is maintained by NABARD (National Bank for Agriculture and Rural Development).

Key Aspects of RIDF:

• Purpose: The RIDF aims to provide financial support for the development of rural infrastructure, primarily focusing on agriculture, social sectors, and rural connectivity.
• Funding: Commercial banks contribute to the RIDF, and these funds are then used to finance projects initiated by state governments and other eligible institutions.
• Eligible Projects: There are 39 eligible activities under the RIDF including works related to agriculture and related sectors, social infrastructure like schools and health centers, and rural connectivity projects like roads and bridges.
• Interest Rates and Loan Term: The loans from RIDF are provided at a rate linked to the Bank Rate prevailing at that point of time, and are to be repaid within seven years, with a grace period of two years.
• Phasing: The implementation phase for RIDF projects varies from 2-5 years, depending on the type of project and its location.