RBI DIVESTS ENTIRE STAKE IN NHB, NABARD
Why in News?
- The RBI has divested its remaining stake in the National Bank for Agriculture and Rural Development (NABARD) and National Housing Bank (NHB) in February and March this year. The government now fully owns these two financial institutions.
- The RBI once held 100 per cent shareholding in NHB, which was divested on March 19, 2019.
- NABARD is an apex development financial institution in India, headquartered at Mumbai with regional offices all over India.
- It is India’s specialised bank in providing credit for Agriculture and Rural Development in India. The Bank has been entrusted with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”. It was established on the recommendations of B.Sivaraman Committee on 12 July 1982 to implement the NABARD Act 1981.
- NABARD supervises State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs) and conducts statutory inspections of these banks.
National Housing Bank:
- •NHB is an All India Financial Institution (AIFl), set up in 1988, under the National Housing Bank Act, 1987.
- The National Housing Policy, 1988 has envisaged the setting up of NHB as the Apex level institution for housing. It is an apex agency established to operate as a principal agency to promote housing finance institutions both at local and regional levels.
- It aims to provide financial and other support incidental to such institutions and for matters connected therewith.