What is the Full Form of NHB?

The full form of NHB is National Housing Bank and it was established by the Act of Parliament in 1987. The NHB agency was owned by the Government of India on July 9, 1988 and it is considered as the major bank for housing. The prime motto of establishing NHB is to facilitate positive influence and to provide financial support to local and regional housing finance agencies. It also works to provide added financial help to certain entities for housing matters. 

The National Housing Bank Act of 1987 was inspected and updated by the Finance Act of 2019. The changes made by the Finance Act 2019 provides the authority to RBI to supervise Housing Finance Companies (HFCs). The on-site and off-site framework of NHB registered HFCs is supervised by RBI and collaborates with other authorities.

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Functions of NHB

As we know the full form NHB is National Housing Bank, its headquarters is in New Delhi and it functions under the regulatory framework of RBI. 

Mentioned below are the functions of NHB:

• The main function of NHB is to encourage a safe, reliable, cost-effective as well as long term mortgage lending framework that appeals to all segments of the population, as well as assimilating the home finance sector with the wider banking markets.
• NHB works to promote a network of specialized housing finance organizations, so that such organizations could represent economic segments and diverse geographies.
• It focuses on providing affordable home loans.
• The National Housing Bank works towards increasing the wealth of the sector and turns it towards housing.
• NHB allows the public sector agencies to grow as intermediators and providers of managed property for residence.
• It works to encourage the availability of buildable land or construction supplies for housing, as well as the development of national housing stocks.

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Significance of NHB

NHB plays significant role in following area:

• It regulates housing finance institutions.
• NHB promotes housing finance in India.
• It works for the financial stability in the housing finance sector.
• The National Housing Bank is involved in research and development on housing as welll as in related sectors. NHB provides valuable insights to market participants, stakeholders and policymakers. 

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