New Delhi: The government has issued a notification taking over the National Housing Bank (NHB) after buying entire stake for Rs 1,450 cr from the Reserve Bank of India (RBI).
The RBI has exited the NHB, thus making it a fully government-owned entity. The central bank was holding 100 pc stake in the NHB, the housing finance regulator. The move is part of ending the cross-holding in regulatory institutions and follows the recommendation of Narasimham-II committee report of October 2001 which had said the RBI could not own those entities which are regulated by it.
“The central government hereby notifies that the subscribed capital of Rs 1,450 cr of the NHB by the RBI, stands transferred to, and vested in the central government upon payment of the face value of the subscribed capital, to the RBI, with effect from the 19th day of March, 2019,” said the finance ministry notification dated April 29. Earlier, based on the second Narasimham committee recommendations, the RBI had proposed to transfer its ownership in SBI, NHB and Nabard to the government in October 2001.
