The full form of NHB is the National Housing Bank. The National Housing Bank Act 1987, which founded NHB as a government-owned organisation, did so on July 9, 1988. The NHB is the primary major bank for housing. The NHB was established to act as a constructive force to support local and regional housing finance organisations, as well as to give supplementary funding to specific organisations and for associated purposes.
The Finance Act of 2019 revised the National Housing Bank Act of 1987. The modification grants the RBI the authority to oversee HFCs (Housing Finance Companies). The NHB registers HFCs, oversees them using on-site and off-site frameworks, and collaborates with other authorities.
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The Main Goal of NHB
NHB was formed to accomplish the specific goals which are:
- Fostering integration between the housing finance industry and the wider banking markets and a strong, safe, sustainable, and cost-effective mortgage lending framework to appeal to all demographic groups.
- Urging the development of a network of specialist housing finance organisations to represent the diverse communities and income levels fairly.
- To make the industry wealthier and direct them toward homes.
- To provide more affordable housing loans.
- Used the oversight and regulatory power granted by the Act to manage the operations of home financing firms.
- To encourage the development of the nation’s housing stock and support an increase in buildable land or building supplies for dwellings.
- To enable public agencies to become intermediaries and providers of managed property for housing.