Government to soon acquire RBI’s stake in National Housing Bank
The government will soon acquire the stake of Reserve Bank of India in housing finance regulator National Housing Bank (NHB), sources said.
The stake transfer would be cash neutral and there would be no cash outgo, sources said. RBI currently holds 100 per cent stake in the NHB.
The Finance Bill 2018 has amended to the National Housing Bank Act, 1987, for transferring RBI’s stake in the NHB to the government.
The Finance Bill 2018 was passed by Parliament in the Budget session and following the assent from the President, the Finance Ministry has started the process of stake transfer, sources added.
It is to be noted that the government has already acquired RBI’s stakes in State Bank of India and National Bank of Agriculture and Rural Development (Nabard).
After getting ownership of NHB, the government would also have a greater say in the boards of these institutions and the flexibility to issue directions to meet its credit objectives for the priority sector.