National Housing Bank (NHB)
National Housing Bank (NHB) has been set up under the National Housing Bank
Act, 1987 with the basic functions described as –
“to operate as a principal
agency to promote housing finance institutions both at local and regional
levels and to provide financial and other support to such institutions and for
matters connected therewith or incidental thereto ”
In terms of the National Housing Bank Act,
1987, National Housing Bank is expected, in the public interest, to regulate
the housing finance system of the country to its advantage or to prevent the
affairs of any housing finance institution being conducted in a manner
detrimental to the interest of the depositors or in a manner prejudicial to the
interest of the housing finance institutions.
expression public deposit has been defined in detail in clause (w) of
sub-paragraph (1) of paragraph 2 of The Housing Finance Companies (NHB)
Directions, 2001. However, the
definition of public deposit specifically excludes certain deposits like amount received from Central
or State Governments, banks, publis financial institutions and other
institutions, from other companies, mutual funds etc.
acceptance of public deposits Housing Finance Companies (HFCs) can be divided
into two categories, i.e. HFCs carrying on the business of housing finance
before June 12, 2000 and HFCs commencing housing finance business after that
Companies carrying on business of housing finance before June 12, 2000 can
accept deposits provided they have NOF of over rupees twenty five lacs and have
applied for certificate of registration with NHB before December 12, 2000 and
either have been granted the certificate of registration valid for acceptance
of deposits by NHB or their application is still pending for issue of
certificate of registration with NHB.
Companies commencing the business of housing finance after June 12, 2000 can
accept public deposits only after:
obtaining certificate of registration from NHB valid for acceptance of
having minimum net owned funds (NOF) of [rupees two crores or more]*.
*this amount was rupees twenty five lacs
or more for HFCs which commenced business before February 16, 2002.
For more information, please visit http://nhb.org.in/