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2. THE NATIONAL HOUSING BANK
2.1 About National Housing Bank
The National Housing Bank (NHB) is a development financial institution, established in 1988,
under an Act of Parliament, viz. the National Housing Bank Act, 1987 (Central Act no. 53 of
1987). NHB is to operate as a principal agency to promote housing finance institutions and
to provide financial and other support to such institutions. NHB was established to perform
three broad functions – Regulation & Supervision of Housing Finance Companies (HFCs),
Financing and Promotion & Development.
As per the provisions of the National Housing Bank Act, 1987, the powers of registration,
regulation, and supervision of Housing Finance Companies (HFCs) were vested with the
National Housing Bank (NHB). However, in terms of the amendment made to the National
Housing Bank Act, 1987, pursuant the Union Budget announcements for 2019-20, the
regulatory powers (including registration of HFCs) of National Housing Bank over Housing
Finance Companies (HFCs) stand transferred to the Reserve Bank of India (RBI) with effect
from August 9, 2019.
Post the above transfer, HFCs are to be treated as one of the categories of Non-Banking
Financial Companies (NBFCs) for regulatory purposes. RBI came out with revised regulations
by consolidating the existing directions and circulars and issued a master circular dated,
February 17, 2021 (Master Direction – Non-Banking Financial Company – Housing Finance
Company (Reserve Bank) Directions, 2021). The details of the same are furnished in Box 1.5
under Chapter – 1. NHB continues to carry out supervision of HFCs and HFCs continue to
submit various returns to NHB as hitherto. The grievance redressal mechanism regarding
HFCs also continues to rest with the NHB.
NHB’s multi-pronged approach towards the development of institutional and market
infrastructure has led to the expansion and stability in the housing sector. NHB is committed
towards establishment of a sound and sustainable housing finance system in the country by
way of promoting institutional framework and market infrastructure.
NHB’s Financial Year (FY) is from July 01 to June 30. Accordingly, the data related to NHB
mentioned in this report pertains from July 01 to June 30, unless mentioned otherwise.
2.1.1 Organisation Structure
NHB is a lean, officer oriented, professionally managed institution with its Headquarters
in Delhi and Regional Offices in Mumbai, Hyderabad, Bengaluru, Kolkata and Delhi; and
Regional Representative Offices at Ahmedabad, Bhopal, Chennai, Guwahati and Lucknow.
Annual Report 2020-21 | 203
2.1 About National Housing Bank
The National Housing Bank (NHB) is a development financial institution, established in 1988,
under an Act of Parliament, viz. the National Housing Bank Act, 1987 (Central Act no. 53 of
1987). NHB is to operate as a principal agency to promote housing finance institutions and
to provide financial and other support to such institutions. NHB was established to perform
three broad functions – Regulation & Supervision of Housing Finance Companies (HFCs),
Financing and Promotion & Development.
As per the provisions of the National Housing Bank Act, 1987, the powers of registration,
regulation, and supervision of Housing Finance Companies (HFCs) were vested with the
National Housing Bank (NHB). However, in terms of the amendment made to the National
Housing Bank Act, 1987, pursuant the Union Budget announcements for 2019-20, the
regulatory powers (including registration of HFCs) of National Housing Bank over Housing
Finance Companies (HFCs) stand transferred to the Reserve Bank of India (RBI) with effect
from August 9, 2019.
Post the above transfer, HFCs are to be treated as one of the categories of Non-Banking
Financial Companies (NBFCs) for regulatory purposes. RBI came out with revised regulations
by consolidating the existing directions and circulars and issued a master circular dated,
February 17, 2021 (Master Direction – Non-Banking Financial Company – Housing Finance
Company (Reserve Bank) Directions, 2021). The details of the same are furnished in Box 1.5
under Chapter – 1. NHB continues to carry out supervision of HFCs and HFCs continue to
submit various returns to NHB as hitherto. The grievance redressal mechanism regarding
HFCs also continues to rest with the NHB.
NHB’s multi-pronged approach towards the development of institutional and market
infrastructure has led to the expansion and stability in the housing sector. NHB is committed
towards establishment of a sound and sustainable housing finance system in the country by
way of promoting institutional framework and market infrastructure.
NHB’s Financial Year (FY) is from July 01 to June 30. Accordingly, the data related to NHB
mentioned in this report pertains from July 01 to June 30, unless mentioned otherwise.
2.1.1 Organisation Structure
NHB is a lean, officer oriented, professionally managed institution with its Headquarters
in Delhi and Regional Offices in Mumbai, Hyderabad, Bengaluru, Kolkata and Delhi; and
Regional Representative Offices at Ahmedabad, Bhopal, Chennai, Guwahati and Lucknow.
Annual Report 2020-21 | 203
