National Housing Bank (NHB)

About NHB:

• National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), set under the National Housing Bank Act, 1987.
• NHB has been established with an objective 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.

Functions of NHB

• Extending refinance to different primary lenders in respect of
  • Eligible housing loans extended by them to individual beneficiaries.
  • For project loans extended by them to various implementing agencies.
• Lending directly in respect of projects undertaken by public housing agencies for housing construction and development of housing related infrastructure.
• Guaranteeing the repayment of principal and payment of interest on bonds issued by Housing Finance Companies.
• NHB registers, regulates and supervises Housing Finance Company (HFCs).

NHB RESIDEX

• NHB RESIDEX, India’s first official housing price index, was an initiative of the National Housing Bank (NHB), undertaken at the behest of the Government of India, Ministry of Finance.

Prelims Question

Consider the following statements regarding “National Housing Bank (NHB)”:
1. It is a wholly owned subsidiary of NABARD.
2.RESIDEX is a housing price index created by NHB.
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2

Answer to the Prelims Question