Question
Consider the following statements regarding the National
Housing Bank: 1. It is a refinancing agency and provides financial and other supports to the housing finance institutions. 2. It also regulates the housing finance companies. 3. It is a fully government-owned agency. Which of the above statements is/are correct?Solution
Statement 1 is correct: The National Housing bank operates as a principal agency to promote housing fi nance institutions. Statement 2 is incorrect: The government has taken away the powers of the National Housing Bank to regulate housing fi nance companies and handed them to the Reserve Bank of India. Statement 3 is correct: It is a fully government-owned agency now since it is owned by RBI. National Housing bank operates as a principal agency to promote housing fi nance institutions both at local and regional levels and to provide financial and other support to such institutions.
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