In 1994, the I. K. Borthakur Committee Report conceptualized the formation of a North-Eastern Development Bank to cater to the needs of the region. Following this report, the then Finance Minister, Dr. Manmohan Singh, in his budget speech in March 1995 announced setting up of a development bank for the North Eastern States of India.
Pursuant to this, the North Eastern Development Finance Corporation Ltd. (NEDFi) was incorporated under the Companies Act, 1956, on August 9, 1995 with its Registered Office at Guwahati, Assam. The Corporation was formally inaugurated by the then Prime Minister, Shri P.V. Narashima Rao on February 23, 1996.
At the time of its establishment, the corporation was placed under the Ministry of Finance, Banking Division for administrative purpose. However, with the formation of Ministry of Development of North Eastern Region (DoNER), Govt. of India in 2004, the Corporation has been placed under the Ministry of DoNER for administrative purpose.