Question

Consider the following statements regarding the National Housing Bank:

1. It is refinancing agency in housing finances by providing financial and other support to the housing finance institutions.
2. It also regulates the housing finance companies.
3. It is a fully government-owned agency.


Which of the above statements is/are correct?

(a) 1 only

(b) 1 and 3 only

(c) 3 only

(d) 1 and 2 only​

Answer 1

Option B - 1 and 3 only

More Information

☆ National Housing Bank :-

• The National Housing bank operates as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions.

• The Reserve Bank of India has exited the National Housing Bank (NHB) making it a fully government-owned now.

• The move is part of ending the cross-holding in regulatory institutions and follows the recommendation of second Narasimham committee report of October 2001 and the RBI’s own discussion paper on the same entitled ‘Harmonizing the role and operations of development financial institutions and banks.’ The Narasimham panel had said the RBI could not own those entities which are regulated by it.

• Later, the government has taken away the powers of the National Housing Bank (NHB) to regulate housing finance companies (HFCs) and handed them to the Reserve Bank of India (RBI).

_________

Answer 2

Consider the following statements regarding the National Housing Bank:

1. It is refinancing agency in housing finances by providing financial and other support to the housing finance institutions.

2. It also regulates the housing finance companies.

3. It is a fully government-owned agency.

Which of the above statements is/are correct?

(a) 1 only

(b) 1 and 3 only

(c) 3 only

(d) 1 and 2 only

Option B is the answer