In Brief: About National Housing Bank (NHB), About National Bank for Agriculture and Rural Development (NABARD)
News : RBI divests its entire stake in Nabard, NHB
- Reserve Bank has divested its entire stake in National Housing Bank (NHB) and the National Bank for Agriculture and Rural Development (NABARD), with this the government is now cent percent holder of both these financial institutions.
- RBI had 100% shareholding in NHB, which was divested for ₹1,450 crore.
- RBI had 72.5% stake in NABARD which was divested in two phases.
- This divestment was based on the recommendations of the Narasimham Committee-II and the Discussion Paper prepared by RBI on Harmonizing the Role and Operations of Development Financials Institutions and Banks.
About National Housing Bank (NHB)
- NHB was set up in July, 1988 under the National Housing Bank Act, 1987.
- It is the apex level financial institution for housing.
- It registers, regulates and supervises Housing Finance Company (HFCs), keeps surveillance through On-site & Off-site Mechanisms and co-ordinates with other Regulators.
- As a result of the revision in the composition of share capital between Government of India and RBI, NHB now is fully owned by Government of India.
Aim: To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing.
- To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
- To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups.
- To augment resources for the sector and channelise them for housing.
- To make housing credit more affordable.
- To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act.
- To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country.
- To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing.
About National Bank for Agriculture and Rural Development (NABARD)
- NABARD was established on the recommendation of the Sivaraman Committee in 1982 under a parliamentary act.
- It was given the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC).
- It is one of the premier agencies providing developmental credit in rural areas and a specialised bank for Agriculture and Rural Development in India.
- Consequent to the revision in the composition of share capital between Government of India and RBI, NABARD today is fully owned by Government of India.
- Providing refinance support and building rural infrastructure
- Preparing district level credit plans and guiding and motivating the banking industry in achieving these targets
- Supervising Cooperative Banks and Regional Rural Banks (RRBs) and helping them develop sound banking practices and onboarding them to the CBS platform.
- Designing new development schemes and the implementation of Government of India’s development schemes
- Training handicraft artisans and providing them a marketing platform for selling these articles.