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 8 of the Companies Act, 2013 (Previously Section 25 of the Companies Act, 1956).
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.
It has been assigned the task for financing, facilitating and mobilizing funds for the economic empowerment of persons 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/UT Government and other Channel Partners such as Public Sector Banks, Regional Rural Banks, NBFC-MFIs, JHARCRAFT, NEDFi etc.
This is managed by a Board of Directors with representation from Central Government, State Scheduled Castes Development Corporations, Financial Institutions and non-official members representing Scheduled Castes.