The idea of establishing the National Housing Bank (NHB) emerged during the preparation of the Seventh Five-Year Plan (1985–1990). A Sub-Group on Housing Finance identified the lack of long-term housing finance for individual households as a major obstacle to the growth of the housing sector in India. To address this issue, the Sub-Group recommended the creation of a national-level institution dedicated to housing finance.
The recommendation was examined by a High-Level Group constituted by the Government of India under the chairmanship of Dr. C. Rangarajan, who was then the Deputy Governor of the Reserve Bank of India (RBI). The Group recommended the establishment of NHB as an autonomous apex housing finance institution. The Government accepted these recommendations and decided to create a specialized institution for promoting housing finance in the country.
A major step towards the establishment of NHB was taken when the then Prime Minister announced the proposal in the Union Budget for 1987–88, presented on 28 February 1987. Subsequently, the National Housing Bank Bill, 1987 was introduced in Parliament to provide the necessary legal framework. The Bill was passed during the winter session of Parliament, and after receiving the assent of the President of India on 23 December 1987, it became the National Housing Bank Act, 1987.
The National Housing Policy, 1988 further recognized NHB as the apex-level institution for housing finance in India. In pursuance of this policy and the provisions of the Act, the National Housing Bank was formally established on 9 July 1988.
Initially, NHB was promoted by the Reserve Bank of India, which contributed its entire paid-up capital. However, following a notification issued on 24 April 2019, the ownership of NHB was transferred to the Government of India, making it a wholly owned government institution. The overall management and direction of NHB are vested in its Board of Directors, as provided under the National Housing Bank Act, 1987. The head office of NHB is located in New Delhi.
Key Facts
| Particular | Details |
|---|---|
| Established | 9 July 1988 |
| Governing Law | National Housing Bank Act, 1987 |
| Headquarters | New Delhi |
| Ownership | Government of India |
| Original Promoter | Reserve Bank of India (RBI) |
| Purpose | Apex institution for housing finance |
| Recommendation for Creation | Seventh Five-Year Plan (1985–90) |
| High-Level Group Chairman | Dr. C. Rangarajan |