NEW DELHI: The Union Cabinet Thursday approved Rs 1,450 crore for the share capital of Reserve Bank of India in the National Housing Bank.
Subsequent to the payment of this amount to RBl, the subscribed capital of NHB shall stand transferred to and vested in the central government.
The National Housing Bank (NHB) has been set up to operate as the principal agency to promote housing finance institutions in India.
"The Union Cabinet Thursday approved payment of the face value of the subscribed share capital of Rs 1,450 crore in National Housing Bank (NHB) to Reserve Bank of India (RBl) consequent to amendments made to the NHB Act, 1987 in 2018," said an official release.
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, it said.
"The change in ownership from RBI to Gol will also segregate RBI's role as banking regulator and as owner of NHB," it added.
Up till now, the authorised capital of NHB stands at Rs 2,000 crore of which Rs 1,450 crore has been subscribed by RBl. Currently, the capital is fully subscribed by RBl.