National Housing Bank of India NHB www.deekpay.com

About National Housing Bank of India NHB

NHB's full name is National Hosing Bank, or National Housing Bank, and is owned by theIndiaThe National Housing Bank (NHB) was established on 9 July 1988 under the National Housing Bank Act, 1987. The National Housing Bank (NHB) was established on 9 July 1988 under the National Housing Bank Act, 1987. From 24 April 2019Reserve Bank of IndiaAs notified, NHB is wholly owned by the Government of India, i.e., the entire paid-up capital of NHB is held by the Government and NHB's head office is located in New Delhi.The general supervision, direction and management of the affairs and business of NHB is vested in its Board of Directors.

NHB's mandate is to act as the principal agency for the promotion of housing finance institutions at the local and regional levels and to provide financial and other services to these institutions. To achieve its objective of regulating the housing finance sector, it registers and supervises Housing Finance Companies (HFCs), conducts supervision through on-site and off-site mechanisms and coordinates with other regulators.

Background to the Establishment of NHB

The Government of India, in its Seventh Five-Year Plan (1985-90), pointed out that individual households had access to very little long-term finance. Accordingly, a proposal was made to set up a national level institution to bridge all the gaps in long term financing in the housing sector. Thereafter, a Committee of Secretaries headed by Dr C Rangarajan was constituted and on its recommendation the National Housing Bank or NHB was set up.

Objectives of the NHB

The NHB was established with the following objectives:

Promote viable and cost-effective housing finance systems that meet the needs of all segments of the population and integrate housing finance systems with the overall financial system. Promote a group of specialised housing finance institutions to adequately meet the needs of different regions and income groups. Regulate the activities of housing finance companies in accordance with the existing regulatory and supervisory powers conferred by the Act. Increase the resources available to the housing sector. Make housing credit more affordable. Providing support and assistance to housing finance institutions. Increase the supply of buildable land and building materials in the housing sector and upgrade the country's housing stock. Encourage public authorities to become facilitators and suppliers of land for housing services.

Organisational structure of the NHB

Governance: Under the Act, the general supervision, direction and management of the affairs and business of NHB is the responsibility of the Board of Directors. REGULATION: The Finance Bill, 2019 amends the National Housing Bank Act, 1987 to vest the regulatory powers of the Housing Finance Corporation (HFC) in the Reserve Bank of India (RBI).

Functions of the NHB

Regulation of Housing Corporations: The National Housing Bank (NHB) is responsible for regulating housing corporations in the country under the Act. Lending: Housing loans are granted to individuals and housing infrastructure companies. Registration of housing finance companies: NHB is responsible for registering housing finance companies in the country. Refinancing: Funds are raised from the market and used to refinance the HFCs together with the cooperative banks. Compliance with regulatory rules: ensuring that housing finance companies under the Act comply with regulatory capital requirements as outlined in the Basel guidelines. Audit of housing corporations: NHB is responsible for auditing housing finance corporations to ensure that they are in compliance with the relevant standards.

Importance of NHB

Regulation of Housing Finance Industry : NHB ensures regulation and supervision of all housing finance companies operating across India. Liquidity in the housing sector: Ensures continuous provision of liquidity to various financial institutions in the housing sector. Promotion of the housing sector: It is also responsible for promoting the housing sector by increasing the number of housing units in the country.

Advantages of NHB

The presence of NHB gives the Indian government sector an agency specialising in housing finance infrastructure that can give companies easy access to refinancing options.NHB also acts as a guarantor for small housing finance companies that are unable to raise funds from the market, providing expertise in underwriting housing finance, helping to create housing stock and facilitating the construction of new homes.

National Housing Bank - RESIDEX

INTRODUCTION: India's first official housing price index, NHB-RESIDEX was created by the National Housing Bank (NHB) on the instructions of the Ministry of Finance. Development: NHB-RESIDEX was created with the help of a Technical Advisory Committee comprising all stakeholders. Goal: The goal of NHB-RESIDEX is to track changes in home prices at the community, city, and national levels. Price changes will be tracked over time, across cities, and at locations within cities. Calculations: Initially calculated using market data, the calculations are now based on valuation data obtained from Housing Finance Companies (HFCs) and banks. For the period 2013 to 2015, data has been sourced from the Central Registry of Restructuring of Securitised Assets and Security Interests in India (CERSAI). What's New: In order to make the NHB-RESIDEX more timely and in sync with the current scenario, NHB has reviewed the process and methodology used for the index computation as well as the base year and segmentation used. NHB-RESIDEX has been expanded to include the Housing Price Index (HPI), the Land Price Index (LPI), the Building Materials Price Index (BMPI) and the Housing Rent Index (HRI). Significance: Using the current trends in the micro and macro markets, BNV-RESIDEX will predict the future behaviour of the housing market. The index will help banks, HFCs, developers and home buyers to determine property prices. The index will help in the process of credit evaluation carried out by the lenders. This will ensure stronger safeguards for financial lending. It can help policy makers and various research organisations to track inflation/deflation in house prices. Policymakers can use the data to develop more effective income collection models and design affordable housing programmes.

concluding remarks

The National Housing Bank of India (NHB) is an autonomous institution that caters to the financing needs of housing finance companies by raising funds for subsequent refinancing or through guarantees.

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