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Share capital of RBI in NHB
March 3 , 2019
1966 days
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- The Cabinet has approved payment of the face value of the share capital of Rs.1450 crore in National Housing Bank (NHB) to Reserve Bank of India (RBl).
- The payment was made consequent to amendments made to the NHB Act, 1987 in 2018.
Why?
- NHB is an All India Financial Institution (AIFl), set up in 1988, under an Act of Parliament.
- NHB is an apex agency to operate as the principal agency to promote housing finance institutions in India.
- The wholesale financing role of NHB will get strengthened with the transfer of ownership to Government, thereby making possible funding support to housing finance companies.
- The change in ownership from RBI to Gol will also segregate RBI's role as banking regulator and as owner of NHB.
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