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National Housing Bank

Topics Covered:

Inclusive growth and issues arising from it.

 

National Housing Bank

 

What to study?

For Prelims: Role, objectives and significance of NHB, Nabard- role and objectives.

For mains: divestment- meaning, need and significance.

 

Context: The Reserve Bank of India (RBI) has sold its entire stakes in the National Bank for Agriculture & Rural Development (NABARD) and National Housing Bank. The decision to divest its entire stake was taken based on the recommendations of the second Narasimham Committee.

The government now holds a 100 per cent stake in both NHB and NABARD.

 

About NHB:

NHB is an All India Financial Institution (AIFl), set up in 1988, under the National Housing Bank Act, 1987.

It is an apex agency established to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.

 

Nabard:

It is an apex development and specialized bank established on 12 July 1982 by an act by the parliament of India.

  • Its main focus is to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector.
  • It was established based on the recommendations of the Committee set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. shivaraman.
  • It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
  • It has been accredited with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.