Change in ownership to segregate RBI’s role as banking regulator and owner of NHB..!

The Cabinet Committee meeting chaired by PM Narendra Modi on Thursday approved the payment of face value subscribed share capital amounting to Rs 1450 crore in the National Housing banks. “This expenditure of is to be met out of Gross Budgetary Support 2018-19. The beneficiaries are the Reserve Bank of India and the Housing Sector”, cleared Finance Minister Arun Jaitley, addressing the decisions.

This decision of the committee is consequent to amendments made to the NHB Act, 1987 in 2018. The change in ownership from RBI to Gol will also segregate RBI’s role as banking regulator and as owner of NHB.

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NHB is an apex agency established to operate as the principal agency to promote housing finance institutions in India. The wholesale financing role of NHB will get strengthened with the transfer of ownership to Government, thereby making possible augmented funding support to housing finance companies.

NBH is 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.

As per the reports, the authorized capital of NHB stands at Rs. 2,000 crore of which Rs. 1,450 crore has been subscribed by RBl. Currently, the capital is fully subscribed by RBl. Subsequent to the payment of this amount to RBl, the subscribed capital of NHB shall stand transferred to and vested in the Central Government.


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