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    Question

    Which institution serves as the apex development

    financial institution for housing in India, responsible for promoting and regulating housing finance companies?
    A Reserve Bank of India (RBI) Correct Answer Incorrect Answer
    B Export-Import Bank of India (EXIM Bank) Correct Answer Incorrect Answer
    C National Housing Bank (NHB) Correct Answer Incorrect Answer
    D Small Industries Development Bank of India (SIDBI) Correct Answer Incorrect Answer
    E National Bank for Financing Infrastructure and Development (NaBFID) Correct Answer Incorrect Answer

    Solution

    The National Housing Bank (NHB), established in 1988 under the NHB Act, 1987, is the principal agency for housing finance in India. • Role: It promotes housing finance institutions, provides them with long-term liquidity, and ensures affordable housing credit across various segments of society. • Regulatory Function: Until 2019, NHB regulated housing finance companies (HFCs). After that, this responsibility was transferred to the Reserve Bank of India (RBI), but NHB continues as the apex development financial institution for housing. • Objective: To build a sound, viable, and cost-effective housing finance system, integrated with India’s broader financial system. • Headquarters: New Delhi.

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