Cabinet approves Rs 1450 Cr for share capital of RBI in National Housing Bank

RBIBy Accommodation Times Bureau

The Cabinet yesterday approved payment of the face value of the subscribed share capital of Rs1450 crore in National Housing Bank (NHB) to Reserve Bank of India (RBl) consequent to amendments made to the NHB Act, 1987 in 2018.


NHB is an apex agency established to operate as the principal agency to promote housing finance institutions in India. The wholesale financing role of NHB will get strengthened with the transfer of ownership to Government, thereby making possible augmented funding support to housing finance companies. The change in ownership from RBI to Gol will also segregate RBI’s role as a banking regulator and as owner of NHB.

Financial Implication

The expenditure of Rs1,450 crore is to be met out of Gross Budgetary Support 2018-19. The beneficiaries are the Reserve Bank of India and the Housing Sector.


NHB is an All India Financial Institution (AIFl), set up in 1988, under an Act of Parliament, viz. the National Housing Bank Act, 1987 (Central Act 53 of 1987). It is an apex agency established to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith. Up till now, the authorized capital of NHB stands at Rs 2,000 crore of which Rs 1,450 crores has been subscribed by RBl. Currently, the capital is fully subscribed by RBl. Subsequent to the payment of this amount to RBl, the subscribed capital of NHB shall stand transferred to and vested in the Central Government.

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