BANKING AFFAIRS

Detailed explanation-1: -Following that, the National Housing Bank Bill (91 of 1987) providing the legislative framework for the establishment of NHB was passed by Parliament in the winter session of 1987 and with the assent of the Hon’ble President of India on December 23, 1987, became an Act of Parliament.

Detailed explanation-2: -Reserve fund.–(1) Every housing finance institution which is a company shall create a reserve fund and transfer therein a sum not less than twenty per cent. of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.

Detailed explanation-3: -National Housing Bank (NHB), is the apex regulatory body for overall regulation and licensing of housing finance companies in India. It is under the jurisdiction of Ministry of Finance, Government of India. It was set up on 9 July 1988 under the National Housing Bank Act, 1987.

Detailed explanation-4: -Detailed Solution. The National Housing Bank was established in July 1988 as a subsidiary of the Reserve Bank. It is the apex institution for housing finance.