CURRENT AFFAIRS

Detailed explanation-1: -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-2: -The Committee of Secretaries considered’ the recommendation and set up the High Level Group under the Chairmanship of Dr. C. Rangarajan, the then Deputy Governor, RBI to examine the proposal and recommended the setting up of National Housing Bank as an autonomous housing finance institution.

Detailed explanation-3: -Indira Gandhi on 05 November 1982. Set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs.17,080 crore as on 31 March 2022. 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-4: -NABARD was established on the recommendations of B. Sivaramman Committee (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981.

Detailed explanation-5: -Reserve Bank of India initially contributed the entire paid-up capital. However, in terms of the amendment made to the NHB Act, 1987 in 2019, pursuant the Union Budget announcements for 2019-20, shares stand transferred from Reserve Bank of India to Government of India.