What is the National Housing Bank (NHB)?
09-01-2024
05:16 PM
1 min read
![What is the National Housing Bank (NHB)? Blog Image](https://vajiram-prod.s3.ap-south-1.amazonaws.com/What_is_National_Housing_Bank_NHB_154edd5511.webp)
Overview:
In a regulatory filing, LIC recently said the board has cleared the proposal to invest in a new company, promoted by the NHB, for residential mortgage-backed securities.
About National Housing Bank (NHB)
- NHB is an All-India Financial Institution (AIFl) established under the National Housing Bank Act, 1987.
- It is wholly owned by the Government of India.
- 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 to such institutions.
- The main functions of NHB include:
- Supervision and grievance redressal regarding Housing Finance Companies (HFCs).
- Ensures that HFCs meet regulatory capital requirements as required by BASEL norms, have a proper risk management framework in place, have good governance practices, etc.
- Financing in the form of extending refinancing options to primary lenders and lending directly with respect to projects undertaken by public housing agencies.
- Promotion and Development.
- NHB supervises HFCs, while regulation of HFCs is with the RBI.
- Head Office: New Delhi
- The general superintendence, direction, and management of the affairs and business of NHB vest in its Board of Directors.
- NHB RESIDEX: It is the country’s first official housing price index (HPI). It captures movements in the prices of residential real estate prices.
![](https://vajiram-prod.s3.ap-south-1.amazonaws.com/Counselling_form_banner_164dd214c5.webp)
Q1) What is the Life Insurance Corporation of India (LIC)?
It is the largest and one of the oldest life insurance companies in India. It is a state-owned insurance group and investment company that was established in 1956. LIC is headquartered in Mumbai, Maharashtra, and it operates with a network of offices and agents across the country.