The Reserve Bank has divested its stake in National Housing Bank (NHB) and National Bank for Agriculture & Rural Development (Nabard), by making them fully government-owned.
This move is part of ending the cross-holding in regulatory institutions and follows the recommendation of the second Narasimham committee report of October 2001.The Narasimham panel had said RBI could not own those entities which are regulated by it.
The National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India.NABARD was established in 1982 to implement the National Bank for Agriculture and Rural Development Act 1981.
NABARD was entrusted with matters concerning policy,planning and operations in the field of credit for agriculture and other economic activities in rural areas in India.
The National Housing Bank (NHB) was set up on 9 July 1988 under the National Housing Bank Act,1987.NHB is an apex financial institution for housing.
Its objective is to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.