In 1995-96, the RIDF was established by the government to fund ongoing rural infrastructure projects
The Fund is administered by the National Agriculture and Rural Development Bank (NABARD)
Domestic commercial banks are contributing to the Fund in terms of their shortcomings in stipulated priority sector loans to agriculture.
The key objective of funds is to lend to state governments and state-owned enterprises in order to fund ongoing rural infrastructure projects.
RIDF's scope has been expanded to include activities such as rural drinking water schemes, soil conservation, rural market yards, rural health centres and primary schools, mini-hydro power plants, Shishu Shiksha Kendra, anganwadis and energy network improvements.