BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has divested its entire stake held in National Housing Bank (NHB), the regulator for housing finance companies, and National Bank for Agriculture and Rural Development (Nabard) to the government, which now holds 100% in these entities.

Detailed explanation-2: -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.

Detailed explanation-3: -The National Bank for Agriculture and Rural Development (NABARD) was established in 1982. RBI had sold its stake and now the Government of India has 99% share in it.

Detailed explanation-4: -Divestment of RBI’s stake in NABARD and NHB has its basis in the recommendation of Narasimham Committee II and the Discussion Paper prepared by RBI on Harmonizing the Role and Operations of Development Financials Institutions and Banks.

Detailed explanation-5: -Is NHB a Government owned Bank or a private Bank? National Housing Bank is a statutory organization set up on July 9, 1988 under the National Housing Bank Act, 1987. NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.