NSFDC was setup by the Government of India on February 08, 1989 with the name National Scheduled Castes and Scheduled Tribes Finance and Development Corporation (NSCSTFDC). It was incorporated as a fully owned Government of India Company under Section 25 (not-for-profit) of the Companies Act, 1956 (Now, a Section 8 of the Company ( not-for-profit) Act, 2013).
Consequent upon the orders of the Government of India declaring bifurcation of the erstwhile NSCSTFDC into two separate corporations (one each for SCs & STs), the existing NSFDC is now functioning exclusively for the development of the Scheduled Castes w.e.f. 10.04.2001.
The broad objective is for financing, facilitating and mobilizing funds for the socio-economic development of Scheduled Caste person having annual family income up to Rs. 3.00 lakh for both rural and urban areas.. It provides financial assistance for income generating schemes for the target group through State Channelising Agencies (SCAs) which are nominated by respective State Government /UT Administrations and other Channel Partners such as Public Sector Banks, Regional Rural Banks, NBFC-MFIs, Cooperative Banks/Societies and other development organisations with whom NSFDC has signed memorandum of agreement (MOA)
The Authorised Share Capital of NSFDC is Rs. 1500 crore. Against the Authorised Share Capital, Government of India has released equity of Rs. 1500.00 crore as on 31.10.2021.