Why this matters now
NHB is tested for: C. Rangarajan Sub-Group 1987 recommendation; National Housing Policy 1988; NHB Act 1987; commenced 9 July 1988; refinance for HFCs (Housing Finance Companies) + SCBs + RRBs + cooperatives; supervision of HFCs (since 2019 transferred to RBI); promotional schemes (RHIF, UHIF); PMAY-Urban + Rural implementation support.
History
- 1987: C. Rangarajan Sub-Group recommended a separate housing-finance apex institution.
- NHB Act 1987 passed Parliament December 1987.
- 9 July 1988: NHB established as wholly-owned subsidiary of RBI.
- March 2019: RBI transferred its 100% stake in NHB to Government of India — RBI continues as banker.
- 1 Aug 2019: Regulation of HFCs transferred from NHB to RBI; NHB retains promotional + refinancing role.
- 2020: COVID emergency liquidity for HFCs.
- 2023: Urban Infrastructure Development Fund (UIDF) Rs 10,000 cr management transferred to NHB.
Functions
- Refinance: housing finance companies (HFCs), scheduled commercial banks, RRBs, cooperative banks for housing loans.
- Direct finance: select housing-related projects + slum redevelopment.
- Promotional + developmental: housing finance market development; standards.
- Refinance scheme for affordable housing (since 2017) — aligned to PMAY-Urban.
- Rural Housing Fund (RHIF) + Urban Housing Infrastructure Fund (UHIF).
- Urban Infrastructure Development Fund (UIDF) — Rs 10,000 cr 2023-24 Budget; for Tier-2 + Tier-3 cities.
Recent
NHB’s balance sheet (FY24): Rs 1.32 lakh crore assets; profit Rs 1,720 cr. NHB Residex — quarterly housing price index across 50 cities (since 2007). Cumulative refinance disbursed FY24: Rs 25,000+ cr. PMAY-Urban (since 2015): 1.18 crore houses sanctioned; NHB administered Credit-Linked Subsidy Scheme (CLSS) component — closed for new applications 31 March 2022.
UPSC angle
Know NHB — National Housing Bank; C. RANGARAJAN SUB-GROUP 1987 recommended; NHB ACT 1987 passed Dec 1987; established 9 JULY 1988 wholly-owned RBI subsidiary; RBI transferred 100% stake to GoI March 2019 = 100% Govt-owned; 1 AUG 2019 HFC regulation transferred from NHB to RBI (NHB retains promotional+refinancing); HQ NEW DELHI; MD+CEO SANJAY SHUKLA since 8 May 2024; FUNCTIONS: (1) REFINANCE HFCs+SCBs+RRBs+cooperatives for housing loans; (2) DIRECT finance select housing+slum redevelopment; (3) PROMOTIONAL housing finance market+standards; (4) Refinance scheme affordable housing 2017 aligned PMAY-Urban; (5) RURAL HOUSING FUND (RHIF) + URBAN HOUSING INFRASTRUCTURE FUND (UHIF); (6) UIDF URBAN INFRASTRUCTURE DEVELOPMENT FUND Rs 10000 cr 2023-24 Budget Tier-2+Tier-3 cities; NHB RESIDEX quarterly housing price index 50 cities since 2007; FY24 assets Rs 1.32 LAKH CR + profit Rs 1720 cr; PMAY-Urban CLSS closed for new applications 31 March 2022.
Frequently asked questions
When was NHB established?
On 9 July 1988 under the National Housing Bank Act 1987, on recommendation of the C. Rangarajan Sub-Group 1987.
Who owns NHB now?
100% Government of India since March 2019 (RBI transferred its full stake).
Who regulates HFCs now?
RBI — since 1 August 2019. NHB retains the refinancing + promotional role; regulation moved to RBI.
What is NHB Residex?
A quarterly housing price index across 50 Indian cities (since 2007) — tracks property price trends.