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.

About NABARD

• 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.

About 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.