National Housing Bank: the government notifies the takeover of NHB to RBI


NEW DELHI: the government issued a notification
socket
more than the National Housing Bank (
NHB) after purchasing the entire stake for Rs 1450 crore
of the reserve bank
of India (
RBI).

the
RBI came out of
NHB, making it a fully government-owned entity. The central bank held 100% of the capital of the
NHB, the housing finance regulator.

The movement is part
of ending cross-participation in regulatory institutions and follows the recommendation
of Narasimham-II committee report
of October 2001 and
RBIown discussion paper on the same topic, titled “Aligning Role and Operations
of Financial institutions and development banks ”.

“The central government hereby
informed that the subscribed capital
of Rs 1450 crore
of the
NHB speak
RBI, is transferred to, and vested in the central government upon payment
of face value
ofthe subscribed capital, at
RBI, with effect
of the 19th day
of March 2019 “, indicates the notification from the Ministry of Finance dated April 29.

The Narasimham panel stated that the
RBI could not own the entities that are regulated by it.

the
RBI also sold its stake in Nabard. The central bank held 72.5% of Nabard’s shares worth Rs 1,450 crore,
of of which 71.5%, amounting to Rs 1,430 crore, was sold in October 2010 and the remaining stake was sold on February 26, 2019.

Previously, based on the recommendations of the Second Narasimham Committee, the
RBI had offered to transfer his property to the State Bank
of India,
NHB and Nabard in government in October 2001.

The decision to establish
NHB was announced in the 1987-1988 budget. Subsequently, the draft law on the National Housing Bank, providing a legislative framework for the
NHB, was adopted by Parliament during the winter session
of 1987 and it became law on December 23, 1987.

National housing policy
of 1988 envisages the creation
of the
NHB as an umbrella institution to promote the housing sector.


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