Union Cabinet approves Rs 1,450 cr for share capital of RBI in National Housing Bank

The Cabinet approved Rs 1,450 crore for the share capital of Reserve Bank of India in the National Housing Bank. After the payment of this amount to RBl, the subscribed capital of NHB shall stand transferred to and vested in the central government. The National Housing Bank (NHB) has been set up to operate as the principal agency to promote housing finance institutions in India.

“The Union Cabinet approved payment of the face value of the subscribed share capital of Rs 1,450 crore in National Housing Bank (NHB) to Reserve Bank of India (RBl) consequent to amendments made to the NHB Act, 1987 in 2018,” said an official release. The wholesale financing role of NHB will get strengthened with the transfer of ownership to government, thereby making possible augmented funding support to housing finance companies, it said.