Economics • Banking & FinanceEasy
What is the primary function of the 'National Housing Bank' (NHB), which operates as a principal agency for housing finance institutions in India?
A. To promote and develop specialized housing finance institutions and regulate housing finance companies.✓ Correct Answer
B. To construct public residential housing for urban workers directly.
C. To provide direct commercial loans for heavy manufacturing industries.
D. To manage microfinance self-help groups across rural India.
💡 Solution & Explanation
The National Housing Bank was incorporated under the National Housing Bank Act of 1987 to function as the apex regulatory and developmental institution for housing finance companies. Direct residential construction is handled by specialized urban development ministries rather than refinancing banks. Financial regulatory bodies form an integral part of Indian economy syllabi.
More Economics Banking & Finance questions
- What is the primary objective of introducing 'Prompt Corrective Action' frameworks for weak banks by the…
- Under the Basel III international regulatory framework, what does the 'Liquidity Coverage Ratio' (LCR)…
- Analyze the role of the 'Collateralized Borrowing and Obligation Repo (CBLO)' segment, now replaced by…
- What structural role does the 'Marginal Standing Facility' play within the liquidity management framework of…
- What structural challenge historically explains why certain backward rural districts in southern Haryana…