The National Housing Bank was set up in India as a wholly- owned subsidiary of which one of the following?
✓ Correct answer: b) Reserve Bank of India
ExplanationThe National Housing Bank (NHB) was established on July 9, 1988, under the National Housing Bank Act of 1987. Initially, it functioned as a wholly-owned subsidiary of the Reserve Bank of India (RBI), which contributed the entire paid-up capital.However, in 2019, the ownership struc- ture of NHB underwent a significant change.The Government of India acquired the entire stake from the RBI, making NHB a whol- ly-owned entity of the Government.Given that the question pertains to the year 2007, at that time, the correct answer is Reserve Bank of India.Functions of NHB The institution plays a crucial role in supervision and grievance redressal by monitoring and regulating Housing Finance Com- panies (HFCs), addressing complaints, and ensuring compliance with financial norms.In terms of financing, it provides refinance support to banks and housing finance institutions, thereby im- proving credit availability for affordable housing projects.Addi- tionally, it focuses on promotion and development by encouraging innovations in housing finance and rural housing development, while also imp
Practice more Economy PYQs
Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.
📈 Economy PYQs →