National Housing Bank (NHB NHB) In India there was no institutional arrangement for long term encouragement of realities husk for a long time. This short arrival was linked by theSub-Group on Housing Finance for the Seventh Five Year Plan (1985 1985-90) as a stumbling block, hindering the progress of the husk sector and recommended setting up of a nodal, public situation institution.

National Housing Bank (NHB NHB)

The Government of India, accepted the recommendation of thesub-group of the planning commission and a High Level Group under the Chairmanship ofDr.C. Rangarajan, the either Deputy Governor of RBI, was set-up to examine the proposition. The high reach group recommended the setting up of National Housing Bank (‘ ‘ NHB ’) as an self-governing encasement finance institution which as accepted by the Government.

While presenting the union budget in 1987-88 the Hon ’ ble Prime Minister of India, on February 28, 1987 annunciated the decision to establish the NHB as an apex echelon institution for capsule finance.

Following that, the legislative process for passing an Act was in progress and NHB bill was passed in the layoff session of 1987 and in December, 1987, ran an Act of Parliament. The National Housing Policy, formulated in 1988envisaged the setting up of NHB as the Apex reach institution for encasement. All these route behaved in setting up of NHB on July 9, 1988 under the NHB Act, 1987. NHB is wholly held by Reserve Bank of India, which contributed the entire paid-up capital.

History

The Preamble of the National Housing Bank Act, 1987 describes the meat-and-potatoes functions of the NHB as – “ … to operate as a primary agency to promote husk finance institutions both at alien and alien situations and to hand pecuniary and other support to parallel institutions and for matters connected therewith or incidental thereto … ”.

According to Section 14 of NHB Act, some of the important businesses which NHB is permitted to transact, are the following:

“(a) promoting, establishing, supporting or aiding in the promotion, establishment and support of housing finance institutions;

(b) making of loans and advances or rendering any other form -of financial assistance whatsoever to housing finance institutions and scheduled banks,[or to any authority established by or under any Central, State or Provincial Act and engaged in slum clearance]…….

(d) guaranteeing the financial obligations of housing finance institutions and underwriting the issue of stocks, shares, bonds debentures and securities of every other description of housing finance institutions……

(h) formulating one or more schemes, for the purpose of mobilisation of resources and extension of credit for housing…….

(i) formulating one or more schemes for the economically weaker sections of society which may be subsidised by the Central Government or any State Government or any other source… etc.”

NHB is one among the 2 nodal agencies for the Urban Poor (ISHUP) and heating and solar lighting systems in renamed it as Rajiv Rinn Yojana (RRY)

National Housing Bank has been designated as workplace for administering and monitoring Capital Subsidy Scheme for Installation of Solar Water Heating and Solar Lighting Systems in Homes.