Economics • Banking & FinanceMedium
Which statutory body in India regulates and supervises Housing Finance Companies (HFCs)?
A. National Housing Bank (NHB)
B. Reserve Bank of India (RBI)✓ Correct Answer
C. Securities and Exchange Board of India (SEBI)
D. Insurance Regulatory and Development Authority of India (IRDAI)
💡 Solution & Explanation
The regulation and supervision of Housing Finance Companies were formally transferred from the National Housing Bank to the Reserve Bank of India through amendments introduced in the Finance Act of 2019 to strengthen financial stability and consolidate regulatory oversight over shadow banking entities. While the NHB was previously the primary regulator, ultimate monetary and supervisory authority now rests with the central bank.
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