The National Housing Bank Act, 1987
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 1 Short title, extent and commencement.
(1) This Act may be called the National Housing Bank Act, 1987.
(2) It extends to the whole of India.
(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
(2) It extends to the whole of India.
(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
1. 9th July, 1988, vide notification No. S.O. 684(E), dated 9th July, 1988, see Gazette of India, Extraordinary, Part II, sec. 3(ii) [except Chapter V and sub-section (3) of section 49].
1st June, 1989, vide notification No. S.O. 394(E), dated 1st June, 1989, see Gazette of India, Extraordinary, Part II, sec. 3(ii) [in respect of Chapter V and sub-section (3) of section 49].
1st June, 1989, vide notification No. S.O. 394(E), dated 1st June, 1989, see Gazette of India, Extraordinary, Part II, sec. 3(ii) [in respect of Chapter V and sub-section (3) of section 49].
Section 2 Definitions.
In this Act, unless the context otherwise requires,--
(a) "Board" means the Board of Directors of the National Housing Bank referred to in section 6;
(b) "Chairman" means the Chairman of the Board appointed under section 6;
(c) "director" means a director appointed under section 6;
(d) "housing finance institution" includes every institution, whether incorporated or not, which primarily transacts or has as 1[one of its principal objects], the transacting of the business of providing finance for housing, whether directly or indirectly;
(e) "Managing Director" means the Managing Director appointed under section 6;
(f) "National Housing Bank" means the National Housing Bank established under section 3;
(g) "notification" means a notification published in the Official Gazette;
(h) "prescribed" means prescribed by regulations made under this Act;
(i) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934).
(j) words and expressions used herein and not defined but defined in the Reserve Bank of India Act, 1934 (2 of 1934), shall have the meanings respectively assigned to them in that Act;
(k) words and expressions used herein and not defined either in this Act or in the Reserve Bank of India Act, 1934 (2 of 1934), but defined in the Banking Regulation Act, 1949 (10 of 1949), shall have the meanings respectively assigned to them in the Banking Regulation Act, 1949.
(a) "Board" means the Board of Directors of the National Housing Bank referred to in section 6;
(b) "Chairman" means the Chairman of the Board appointed under section 6;
(c) "director" means a director appointed under section 6;
(d) "housing finance institution" includes every institution, whether incorporated or not, which primarily transacts or has as 1[one of its principal objects], the transacting of the business of providing finance for housing, whether directly or indirectly;
(e) "Managing Director" means the Managing Director appointed under section 6;
(f) "National Housing Bank" means the National Housing Bank established under section 3;
(g) "notification" means a notification published in the Official Gazette;
(h) "prescribed" means prescribed by regulations made under this Act;
(i) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934).
(j) words and expressions used herein and not defined but defined in the Reserve Bank of India Act, 1934 (2 of 1934), shall have the meanings respectively assigned to them in that Act;
(k) words and expressions used herein and not defined either in this Act or in the Reserve Bank of India Act, 1934 (2 of 1934), but defined in the Banking Regulation Act, 1949 (10 of 1949), shall have the meanings respectively assigned to them in the Banking Regulation Act, 1949.
1. Subs. by Act 15 of 2000, s. 2, for "its principal object" (w.e.f. 12-6-2000).
Section 3 Establishment and incorporation of National Housing Bank.
(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established for the purposes of this Act, a bank to be known as the National Housing Bank.
(2) The National Housing Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue and be sued.
(3) The head office of the National Housing Bank shall be at 1[New Delhi or at such other place as the Central Government] may, by notification, specify.
(4) The National Housing Bank may establish offices, branches or agencies at any place in India, and with the previous approval of 2[the Central Government], at any place outside India.
(2) The National Housing Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue and be sued.
(3) The head office of the National Housing Bank shall be at 1[New Delhi or at such other place as the Central Government] may, by notification, specify.
(4) The National Housing Bank may establish offices, branches or agencies at any place in India, and with the previous approval of 2[the Central Government], at any place outside India.
1. Subs. by Act 13 of 2018, s. 163, for “Bombay or at such other place as the Reserve Bank” (w.e.f. 1-6-2018).
2. Subs. by s. 163, ibid., for “the Reserve Bank” (w.e.f. 1-6-2018).
2. Subs. by s. 163, ibid., for “the Reserve Bank” (w.e.f. 1-6-2018).
Section 4 Capital.
1[4. Capital.--(1) The authorised and paid-up capital of the National Housing Bank shall be three hundred and fifty crores of rupees:
2[Provided that the Central Government may, by notification, increase the authorised capital up to two thousand crore rupees or such other amount as may be determined by it from time to time.]
(2) The Board may, on such terms and conditions, as determined by it from time to time, issue the increased authorised capital to 3***, the Central Government, scheduled banks, public financial institutions, housing finance institutions or such other institutions, as may be approved by the Central Government:
Provided that no increase in the issued capital shall be made in such manner that 3***, the Central Government, public sector banks, public financial institutions or other institutions owned or controlled by the Central Government, hold in aggregate at any time, less than fifty-one per cent. of the issued capital of the National Housing Bank.]
4[(3) The subscribed capital of one thousand four hundred and fifty crore rupees of the National Housing Bank, which has been subscribed to by the Reserve Bank, shall stand transferred to, and vested in the Central Government upon payment of the face value of the subscribed capital, to the Reserve Bank from such date as may be notified by the Central Government.]
2[Provided that the Central Government may, by notification, increase the authorised capital up to two thousand crore rupees or such other amount as may be determined by it from time to time.]
(2) The Board may, on such terms and conditions, as determined by it from time to time, issue the increased authorised capital to 3***, the Central Government, scheduled banks, public financial institutions, housing finance institutions or such other institutions, as may be approved by the Central Government:
Provided that no increase in the issued capital shall be made in such manner that 3***, the Central Government, public sector banks, public financial institutions or other institutions owned or controlled by the Central Government, hold in aggregate at any time, less than fifty-one per cent. of the issued capital of the National Housing Bank.]
4[(3) The subscribed capital of one thousand four hundred and fifty crore rupees of the National Housing Bank, which has been subscribed to by the Reserve Bank, shall stand transferred to, and vested in the Central Government upon payment of the face value of the subscribed capital, to the Reserve Bank from such date as may be notified by the Central Government.]
1. Subs. by Act 15 of 2000, s. 3, for section 4 (w.e.f. 12-6-2000).
2. Subs. by Act 13 of 2018, s. 164, for the proviso (w.e.f. 1-6-2018).
3. The words “the Reserve Bank,” omitted by s. 164, ibid. (w.e.f. 1-6-2018).
4. Ins. by s. 164, ibid. (w.e.f. 1-6-2018).
2. Subs. by Act 13 of 2018, s. 164, for the proviso (w.e.f. 1-6-2018).
3. The words “the Reserve Bank,” omitted by s. 164, ibid. (w.e.f. 1-6-2018).
4. Ins. by s. 164, ibid. (w.e.f. 1-6-2018).
Section 5 Management.
(1) The general superintendence, direction and management of the affairs and business of the National Housing Bank shall vest in the Board of Directors, which shall exercise all powers and do all acts and things, which may be exercised or done by the National Housing Bank.
(2) Subject to the provisions of this Act, the Board, in discharging its functions, shall act on business principles with due regard to public interest.
(3) Subject to the provisions of sub-section (1) and save as otherwise provided in the regulations made under this Act,--
1[(a) the Chairman, if he is a whole-time director or if he is holding offices both as the Chairman and the Managing Director, or
(b) the Managing Director, if the Chairman is not if he is whole-time director, or if the Chairman being a whole-time director, is absent,]
shall also have powers of general superintendence, direction and management of the affairs and business of the National Housing Bank and may also exercise all powers and do all acts and things which may be exercised or done by the National Housing Bank and shall act on business principles with due regard to public interest.
(4) The Managing Director shall, in the discharge of his powers and functions, follow such directions as the Chairman may give.
(5) In the discharge of its functions under this Act, the National Housing Bank shall be guided by such directions in matters of policy involving public interest as the Central Government 2*** may give in writing.
(2) Subject to the provisions of this Act, the Board, in discharging its functions, shall act on business principles with due regard to public interest.
(3) Subject to the provisions of sub-section (1) and save as otherwise provided in the regulations made under this Act,--
1[(a) the Chairman, if he is a whole-time director or if he is holding offices both as the Chairman and the Managing Director, or
(b) the Managing Director, if the Chairman is not if he is whole-time director, or if the Chairman being a whole-time director, is absent,]
shall also have powers of general superintendence, direction and management of the affairs and business of the National Housing Bank and may also exercise all powers and do all acts and things which may be exercised or done by the National Housing Bank and shall act on business principles with due regard to public interest.
(4) The Managing Director shall, in the discharge of his powers and functions, follow such directions as the Chairman may give.
(5) In the discharge of its functions under this Act, the National Housing Bank shall be guided by such directions in matters of policy involving public interest as the Central Government 2*** may give in writing.
1. Subs. by Act 15 of 2000, s. 4, for clauses (a) and (b) (w.e.f. 12-6-2000).
2. The words “, in consultation with the Reserve Bank, or the Reserve Bank,” omitted by Act 13 of 2018, s. 165 (w.e.f. 1-6- 2018).
2. The words “, in consultation with the Reserve Bank, or the Reserve Bank,” omitted by Act 13 of 2018, s. 165 (w.e.f. 1-6- 2018).
Section 6 Board of Directors.
(1) The Board of Directors of the National Housing Bank shall consist of the following, namely:--
(a) a Chairman and a Managing Director:
Provided that the same person may be appointed as Chairman and as Managing Director;
(b) 1[two directors] from amongst the experts in the field of housing, architecture, engineering, sociology, finance, law, management and corporate planning or in any other field, special knowledge of which is considered useful to the National Housing Bank;
2[(c) two directors, who shall be persons with experience in the working of institutions involved in providing funds for housing or engaged in housing development or have experience in the working of financial institutions or scheduled banks;
(ca) two directors elected in such manner as may be prescribed by shareholders other than 3***the Central Government and other institutions owned or controlled by the Central Government;]
(d) 4[one director] from out of the directors of the Reserve Bank;
(e) three directors from amongst the officials of the Central Government;
(f) two directors from amongst the officials of the State Government.
(2) The Chairman, the Managing Director and other directors 5[excluding the directors referred to in clauses (ca) and (d)], shall be appointed by the Central Government 6[the director] referred to in clause (d) shall be nominated by the Reserve Bank.
(a) a Chairman and a Managing Director:
Provided that the same person may be appointed as Chairman and as Managing Director;
(b) 1[two directors] from amongst the experts in the field of housing, architecture, engineering, sociology, finance, law, management and corporate planning or in any other field, special knowledge of which is considered useful to the National Housing Bank;
2[(c) two directors, who shall be persons with experience in the working of institutions involved in providing funds for housing or engaged in housing development or have experience in the working of financial institutions or scheduled banks;
(ca) two directors elected in such manner as may be prescribed by shareholders other than 3***the Central Government and other institutions owned or controlled by the Central Government;]
(d) 4[one director] from out of the directors of the Reserve Bank;
(e) three directors from amongst the officials of the Central Government;
(f) two directors from amongst the officials of the State Government.
(2) The Chairman, the Managing Director and other directors 5[excluding the directors referred to in clauses (ca) and (d)], shall be appointed by the Central Government 6[the director] referred to in clause (d) shall be nominated by the Reserve Bank.
1. Subs. by Act 15 of 2000, s. 5, for “three directors” (w.e.f 12-6-2000).
2. Subs. by s. 5, ibid., for clause (c) (w.e.f. 12-6-2000).
3. The words “the Reserve Bank,” omitted by Act 13 of 2018, s. 166 (w.e.f. 1-6-2018).
4. Subs. by s. 166, ibid., for “two directors” (w.e.f. 1-6-2018).
5. Subs. by Act 15 of 2000, s. 5, for “excluding the directors referred to in clause (d)” (w.e.f. 12-6-2000).
6. Subs. by Act 13 of 2018, s. 166, for “in consultation with the Reserve Bank and directors” (w.e.f. 1-6-2018).
2. Subs. by s. 5, ibid., for clause (c) (w.e.f. 12-6-2000).
3. The words “the Reserve Bank,” omitted by Act 13 of 2018, s. 166 (w.e.f. 1-6-2018).
4. Subs. by s. 166, ibid., for “two directors” (w.e.f. 1-6-2018).
5. Subs. by Act 15 of 2000, s. 5, for “excluding the directors referred to in clause (d)” (w.e.f. 12-6-2000).
6. Subs. by Act 13 of 2018, s. 166, for “in consultation with the Reserve Bank and directors” (w.e.f. 1-6-2018).
Section 7 Term of office of Chairman, Managing Director and other directors, service conditions, etc.
(1) The Chairman and the Managing Director shall hold office for such term, not exceeding five years and shall receive such salary and allowances and be governed by such terms and conditions of service as the Central Government may 1*** specify and shall be eligible for re-appointment:
Provided that the Chairman or, as the case may be, the Managing Director shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(2) The directors referred to in 2[clauses (b), (c) and (ca)] of sub-section (1) of section 6 shall hold office for a term of three years:
3* * * * *
(3) The Central Government may 4*** remove the Chairman or the Managing Director, or any other director referred to in sub-section (2), at any time before the expiry of his term of office after giving him a reasonable opportunity of showing case against the proposed removal.
(4) Notwithstanding anything contained in sub-sections (1) and (3), the Central Government 4***shall have the right to terminate the term of office of the Chairman or, as the case may be, the Managing Director, at any time before the expiry of the term specified under sub-section (1), by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof and the Chairman or the Managing Director, as the case may be, shall also have the right to relinquish his office at any time before the expiry of the term specified under sub-section (1), by giving to the Central Government notice of not less than three months in writing or three months salary and allowances in lieu thereof.
(5) The directors shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any of its committees and for attending to any other work of the National Housing Bank:
Provided that no such fee shall be payable to any director, who is an official of the Government or a director of the Reserve Bank.
Provided that the Chairman or, as the case may be, the Managing Director shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(2) The directors referred to in 2[clauses (b), (c) and (ca)] of sub-section (1) of section 6 shall hold office for a term of three years:
3* * * * *
(3) The Central Government may 4*** remove the Chairman or the Managing Director, or any other director referred to in sub-section (2), at any time before the expiry of his term of office after giving him a reasonable opportunity of showing case against the proposed removal.
(4) Notwithstanding anything contained in sub-sections (1) and (3), the Central Government 4***shall have the right to terminate the term of office of the Chairman or, as the case may be, the Managing Director, at any time before the expiry of the term specified under sub-section (1), by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof and the Chairman or the Managing Director, as the case may be, shall also have the right to relinquish his office at any time before the expiry of the term specified under sub-section (1), by giving to the Central Government notice of not less than three months in writing or three months salary and allowances in lieu thereof.
(5) The directors shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any of its committees and for attending to any other work of the National Housing Bank:
Provided that no such fee shall be payable to any director, who is an official of the Government or a director of the Reserve Bank.
1. The words ", in consultation with the Reserve Bank," omitted by s. 167, ibid. (w.e.f. 1-6-2018).
2. Subs. by Act 15 of 2000, s. 6, for "clauses (b) and (c)" (w.e.f. 12-6-2000).
3. The proviso omitted by Act 45 of 2006, s. 19 (w.e.f. 16-10-2006).
2. Subs. by Act 15 of 2000, s. 6, for "clauses (b) and (c)" (w.e.f. 12-6-2000).
3. The proviso omitted by Act 45 of 2006, s. 19 (w.e.f. 16-10-2006).
Section 8 Disqualifications.
No person shall be a director of the Board, if he--
(a) is, or becomes of unsound mind and has been so declared by a competent court; or
(b) is or has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) is, or at any time has been, adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or
(d) has, for any reason, been removed or dismissed from the service of--
(i) the Government, or
(ii) the Reserve Bank, the State Bank or any other bank, or
(iii) any public financial institution, or state financial corporation, or
(iv) any other corporation owned or controlled by the Government.
(a) is, or becomes of unsound mind and has been so declared by a competent court; or
(b) is or has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) is, or at any time has been, adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or
(d) has, for any reason, been removed or dismissed from the service of--
(i) the Government, or
(ii) the Reserve Bank, the State Bank or any other bank, or
(iii) any public financial institution, or state financial corporation, or
(iv) any other corporation owned or controlled by the Government.
Section 9 Vacation and resignation of office by directors.
(1) If a director--
(a) becomes subject to any of the disqualifications mentioned in section 8; or
(b) is absent without leave of the Board for three or more consecutive meetings thereof,
his seat shall thereupon become vacant.
(2) Any director may resign his office by giving notice thereof in writing to the authority that appointed or, as the case may be, nominated him and on his resignation being accepted by such authority or if his resignation is not sooner accepted, on the expiry of three months from the receipt thereof by such appointing authority, he shall be deemed to have vacated his office.
(a) becomes subject to any of the disqualifications mentioned in section 8; or
(b) is absent without leave of the Board for three or more consecutive meetings thereof,
his seat shall thereupon become vacant.
(2) Any director may resign his office by giving notice thereof in writing to the authority that appointed or, as the case may be, nominated him and on his resignation being accepted by such authority or if his resignation is not sooner accepted, on the expiry of three months from the receipt thereof by such appointing authority, he shall be deemed to have vacated his office.
Section 10 Casual vacancy in the office of Chairman or Managing Director.
If the Chairman, or as the case may be, the Managing Director, is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, the Central Government may, appoint another person to act in his place during his absence.
Section 11 Meetings of Board.
(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings, as may be prescribed.
(2) The Chairman, or, if for any reason he is unable to attend a meeting of the Board, the Managing Director, or, in the event of both the Chairman and the Managing Director being unable to attend a meeting, any other director nominated by the Chairman in this behalf and in the absence of such nomination, any director elected by the directors present from among themselves at the meeting, shall preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.
(2) The Chairman, or, if for any reason he is unable to attend a meeting of the Board, the Managing Director, or, in the event of both the Chairman and the Managing Director being unable to attend a meeting, any other director nominated by the Chairman in this behalf and in the absence of such nomination, any director elected by the directors present from among themselves at the meeting, shall preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.
Section 12 Executive Committee and other committees.
(1) The Board may constitute an Executive Committee consisting of such number of directors as may be prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed, or, as may be delegated to it, by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for such purposes, as it may decide and any committee so constituted shall discharge such functions as may be delegated to it by the Board.
(4) The Executive Committee or any other committees constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings, as may be prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed, or, as may be delegated to it, by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for such purposes, as it may decide and any committee so constituted shall discharge such functions as may be delegated to it by the Board.
(4) The Executive Committee or any other committees constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings, as may be prescribed.
Section 13 Director of Board or member of committee thereof not to participate in meetings in certain cases.
Any director of the Board or any member of a committee, who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board or a committee thereof, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the Board, or the committee, as the case may be, and the director or member shall not take any part in any deliberation or decision of the Board or the committee with respect to that matter.
Section 14 Business of the National Housing Bank.
Subject to the provisions of this Act, the National Housing Bank may transact all or any of the following kinds of business, namely:--
(a) promoting, establishing, supporting or aiding in the promotion, establishment and support of housing finance institutions;
1[(b) making of loans and advances or rendering any other form of financial assistance whatsoever for housing activities to housing finance institutions, scheduled banks, state cooperative agricultural and rural development banks or any other institution or class of institutions as may be notified by the Central Government;
(ba) making of loans and advances for housing or residential township-cum-housing development or slum clearance projects;]
(c) subscribing to or purchasing stocks, shares, bonds, debentures and securities of every other description;
(d) guaranteeing the financial obligations of housing finance institutions and underwriting the issue of stocks, shares, bonds, debentures and securities of every other description of housing finance institutions;
(e) drawing, accepting, discounting or rediscounting, buying or selling and dealing in bills of exchange, promissory notes, bonds, debentures, hundies, coupons and other instruments by whatever name called;
2[(ea) buying, selling or otherwise dealing in any loans or advances secured by mortgage or charge of the immovable property relating to scheduled banks or housing finance institutions;
(eb) creating one or more trusts and transferring loans or advances together with or without securities therefor to such trusts for consideration;
(ec) setting aside loans or advances held by the National Housing Bank and issuing and selling securities based upon such loans or advances so set aside in the form of debt obligations, trust certificates of beneficial interest or other instruments, by whatever name called, and to act as trustee for the holders of such securities;
(ed) setting up of one or more mutual funds for undertaking housing finance activities;
(ee) undertaking or participating in housing mortgage insurance;]
3[(f) promoting, forming, conducting or associating in the promotion, formation or conduct of companies, mortgage banks, subsidiaries, societies, trusts or such other association of persons as it may deem fit for carrying out all or any of its functions under this Act;]
(g) undertaking research and surveys on construction techniques and other studies relating to or connected with shelter, housing and human settlement;
(h) formulating one or more schemes, for the purpose of mobilisation of resources and extension of credit for housing;
4[(hh) formulating a scheme for the purpose of accepting deposits referred to in clause (a) of section 2 of the Voluntary Deposits (Immunities and Exemptions) Act, 1991 (47 of 1991) and crediting forty per cent. of the amount of such deposits to a special fund created under section 37;]
(i) formulating one or more schemes; for the economically weaker sections of society which may be subsidised by the Central Government or any State Government or any other source;
(j) organising training programmes, seminars and symposia on matters relating to housing;
(k) providing guidelines to the housing finance institutions to ensure their growth on sound lines;
(l) providing technical and administrative assistance to housing finance institutions;
(m) co-ordinating with the Life Insurance Corporation of India the Unit Trust of India, the General Insurance Corporation of India and other financial institutions, in the discharge of its overall functions;
(n) exercising all powers and functions in the performance of duties entrusted to the National Housing Bank under this Act or under any other law for the time being in force;
(o) acting as agent of the Central Government, the State Government or the Reserve Bank or of any authority as may be authorised by the Reserve Bank;
(p) any other kind of business which the Central Government may, on the recommendation of the Reserve Bank, authorise;
(q) generally, doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers or the discharge of its duties under this Act.
(a) promoting, establishing, supporting or aiding in the promotion, establishment and support of housing finance institutions;
1[(b) making of loans and advances or rendering any other form of financial assistance whatsoever for housing activities to housing finance institutions, scheduled banks, state cooperative agricultural and rural development banks or any other institution or class of institutions as may be notified by the Central Government;
(ba) making of loans and advances for housing or residential township-cum-housing development or slum clearance projects;]
(c) subscribing to or purchasing stocks, shares, bonds, debentures and securities of every other description;
(d) guaranteeing the financial obligations of housing finance institutions and underwriting the issue of stocks, shares, bonds, debentures and securities of every other description of housing finance institutions;
(e) drawing, accepting, discounting or rediscounting, buying or selling and dealing in bills of exchange, promissory notes, bonds, debentures, hundies, coupons and other instruments by whatever name called;
2[(ea) buying, selling or otherwise dealing in any loans or advances secured by mortgage or charge of the immovable property relating to scheduled banks or housing finance institutions;
(eb) creating one or more trusts and transferring loans or advances together with or without securities therefor to such trusts for consideration;
(ec) setting aside loans or advances held by the National Housing Bank and issuing and selling securities based upon such loans or advances so set aside in the form of debt obligations, trust certificates of beneficial interest or other instruments, by whatever name called, and to act as trustee for the holders of such securities;
(ed) setting up of one or more mutual funds for undertaking housing finance activities;
(ee) undertaking or participating in housing mortgage insurance;]
3[(f) promoting, forming, conducting or associating in the promotion, formation or conduct of companies, mortgage banks, subsidiaries, societies, trusts or such other association of persons as it may deem fit for carrying out all or any of its functions under this Act;]
(g) undertaking research and surveys on construction techniques and other studies relating to or connected with shelter, housing and human settlement;
(h) formulating one or more schemes, for the purpose of mobilisation of resources and extension of credit for housing;
4[(hh) formulating a scheme for the purpose of accepting deposits referred to in clause (a) of section 2 of the Voluntary Deposits (Immunities and Exemptions) Act, 1991 (47 of 1991) and crediting forty per cent. of the amount of such deposits to a special fund created under section 37;]
(i) formulating one or more schemes; for the economically weaker sections of society which may be subsidised by the Central Government or any State Government or any other source;
(j) organising training programmes, seminars and symposia on matters relating to housing;
(k) providing guidelines to the housing finance institutions to ensure their growth on sound lines;
(l) providing technical and administrative assistance to housing finance institutions;
(m) co-ordinating with the Life Insurance Corporation of India the Unit Trust of India, the General Insurance Corporation of India and other financial institutions, in the discharge of its overall functions;
(n) exercising all powers and functions in the performance of duties entrusted to the National Housing Bank under this Act or under any other law for the time being in force;
(o) acting as agent of the Central Government, the State Government or the Reserve Bank or of any authority as may be authorised by the Reserve Bank;
(p) any other kind of business which the Central Government may, on the recommendation of the Reserve Bank, authorise;
(q) generally, doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers or the discharge of its duties under this Act.
1. Subs. by Act 15 of 2000, s. 7, for clause (b) (w.e.f. 12-6-2000).
2. Ins. by s. 7, ibid. (w.e.f 12-6-2000).
3. Subs. by Act 15 of 2000, s. 7, for clause (f) (w.e.f. 12-6-2000).
4. Ins. by Act 47 of 1991, s. 5 (w.e.f. 20-9-1991).
2. Ins. by s. 7, ibid. (w.e.f 12-6-2000).
3. Subs. by Act 15 of 2000, s. 7, for clause (f) (w.e.f. 12-6-2000).
4. Ins. by Act 47 of 1991, s. 5 (w.e.f. 20-9-1991).
Section 15 Borrowings and acceptance of deposits by National Housing Bank.
(1) The National Housing Bank may, for the purpose of carrying out its functions under this Act--
(a) issue and sell bonds and debentures with or without the guarantee of the Central Government, in such manner and on such terms as may be prescribed;
(b) borrow money from 1[the Central Government, scheduled banks, financial institutions, mutual funds] and from any other authority or organisation or institution approved by that Government on such terms and conditions as may be agreed upon;
(c) accept deposits repayable after the expiry of 2[such period and] on such terms as may generally or specially be approved by the Reserve Bank:
3[Provided that nothing contained in this clause shall apply to deposits accepted under the scheme formulated by the Bank in pursuance of clause (hh) of section 14;]
(d) borrow money from the Reserve Bank--
4[(i) by way of loans and advances and generally obtain financial assistance in such manner or on such terms and conditions as may be specified by the Reserve Bank;]
(ii) out of the National Housing Credit (Long Term Operations) Fund established under section 46D of the Reserve Bank of India Act, 1934 (2 of 1934) or any of the purposes specified in that section;
(e) receive for services rendered, such remuneration, commission, commitment charges, consultancy charges, service charges, royalties, premia, licence fees and any other consideration of whatever description;
(f) receive gifts, grants, donations or benefactions from Government or any other source.
(2) The Central Government may, on a request being made to it by the National Housing Bank, guarantee the bonds and debentures issued by the National Housing Bank as to the repayment of principal and the payment of interest at such rate as may be fixed by that Government.
(a) issue and sell bonds and debentures with or without the guarantee of the Central Government, in such manner and on such terms as may be prescribed;
(b) borrow money from 1[the Central Government, scheduled banks, financial institutions, mutual funds] and from any other authority or organisation or institution approved by that Government on such terms and conditions as may be agreed upon;
(c) accept deposits repayable after the expiry of 2[such period and] on such terms as may generally or specially be approved by the Reserve Bank:
3[Provided that nothing contained in this clause shall apply to deposits accepted under the scheme formulated by the Bank in pursuance of clause (hh) of section 14;]
(d) borrow money from the Reserve Bank--
4[(i) by way of loans and advances and generally obtain financial assistance in such manner or on such terms and conditions as may be specified by the Reserve Bank;]
(ii) out of the National Housing Credit (Long Term Operations) Fund established under section 46D of the Reserve Bank of India Act, 1934 (2 of 1934) or any of the purposes specified in that section;
(e) receive for services rendered, such remuneration, commission, commitment charges, consultancy charges, service charges, royalties, premia, licence fees and any other consideration of whatever description;
(f) receive gifts, grants, donations or benefactions from Government or any other source.
(2) The Central Government may, on a request being made to it by the National Housing Bank, guarantee the bonds and debentures issued by the National Housing Bank as to the repayment of principal and the payment of interest at such rate as may be fixed by that Government.
1. Subs. by Act 15 of 2000, s. 8, for "the Central Government" (w.e.f. 12-6-2000).
2. Subs. by s. 8, ibid., for "a period which shall not be less than twelve months from the date of the making of the deposit" (w.e.f. 12-6-2000).
3. Added by Act 47 of 1991, s. 5 (w.e.f. 20-9-1991).
4. Subs. by Act 15 of 2000, s. 8, for sub-clause (i) (w.e.f. 12-6-2000).
2. Subs. by s. 8, ibid., for "a period which shall not be less than twelve months from the date of the making of the deposit" (w.e.f. 12-6-2000).
3. Added by Act 47 of 1991, s. 5 (w.e.f. 20-9-1991).
4. Subs. by Act 15 of 2000, s. 8, for sub-clause (i) (w.e.f. 12-6-2000).
Section 16 Loans in foreign currency.
(1) Notwithstanding anything contained in 5[the Foreign Exchange Management Act, 1999 (42 of 1999)] or in any other law for the time being in force relating to foreign exchange, the National Housing Bank may, for the purpose of making loans and advances under this Act, borrow in such manner and on such conditions as may be prescribed in consultation with the Reserve Bank and with the previous approval of the Central Government, foreign currency from any bank or financial institution in India or elsewhere.
(2) The Central Government may, where necessary, guarantee any loan taken by the National Housing Bank under sub-section (1) or any part thereof as to the repayment of principal and the payment of interest and other incidental charges.
(2) The Central Government may, where necessary, guarantee any loan taken by the National Housing Bank under sub-section (1) or any part thereof as to the repayment of principal and the payment of interest and other incidental charges.
1. Subs. by Act 13 of 2018, s. 168, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973).
Section 16A Assistance to borrower when to operate or a charge in the property offered as security.
1[16A. Assistance to borrower when to operate or a charge in the property offered as security.-- (1) Where any person or institution seeks any financial assistance from the National Housing Bank on the security of any immovable property belonging to him or to that institution or on the security of the property of some other person whose property is offered as a collateral security for such assistance, such person or institution or, as the case may be, such other person may execute a written declaration in the form set out in the Third Schedule to this Act stating therein the particulars of the immovable property which is proposed to be offered as security, or as the case may be, collateral security, for such assistance and agreeing that the dues relating to the assistance, if granted, shall be a charge on such immovable property and, if on receipt of such declaration, the National Housing Bank grants any financial assistance to the person or institution aforesaid, the dues relating to such assistance shall, without prejudice to the rights of any other creditor holding any prior charge or mortgage in respect of the immovable property so specified, be, by virtue of the provisions of this section, a charge on the property specified in the declaration aforesaid.
(2) Where any further immovable property is offered by a person or an institution as security for the financial assistance referred to in sub-section (1), such person or institution may execute a fresh declaration, as far as may be in the form set out in the Third Schedule to this Act, whereupon the dues relating to such assistance shall, by virtue of the provisions of this section, also be a charge on the property specified in such fresh declaration.
(3) A declaration made under sub-section (1) or sub-section (2) may be varied or revoked at any time by the person or institution as aforesaid, with the prior approval of the National Housing Bank.
(4) Every declaration made under sub-section (1) or sub-section (2) shall be deemed to be a document registrable as an agreement under the provisions of the Registration Act, 1908 (16 of 1908) and no such declaration shall have effect unless it is so registered.]
(2) Where any further immovable property is offered by a person or an institution as security for the financial assistance referred to in sub-section (1), such person or institution may execute a fresh declaration, as far as may be in the form set out in the Third Schedule to this Act, whereupon the dues relating to such assistance shall, by virtue of the provisions of this section, also be a charge on the property specified in such fresh declaration.
(3) A declaration made under sub-section (1) or sub-section (2) may be varied or revoked at any time by the person or institution as aforesaid, with the prior approval of the National Housing Bank.
(4) Every declaration made under sub-section (1) or sub-section (2) shall be deemed to be a document registrable as an agreement under the provisions of the Registration Act, 1908 (16 of 1908) and no such declaration shall have effect unless it is so registered.]
1. Ins. by Act 15 of 2000, s. 9 (w.e.f. 12-6-2000).
Section 16B Amount and security to be held in trust.
1[16B. Amount and security to be held in trust.--(1) Any sums received by a borrowing institution in repayment or realisation of loans and advances financed or refinanced either wholly or partly by the National Housing Bank shall, to the extent of the accommodation granted by the National Housing Bank and remaining outstanding, be deemed to have been received by the borrowing institution in trust for the National Housing Bank, and shall accordingly be paid by such institution to the National Housing Bank.
(2) Where any accommodation has been granted by the National Housing Bank to a borrowing institution, all securities held, or which may be held, by such borrowing institution on account of any transaction in respect of which such accommodation has been granted, shall be held by such institution in trust for the National Housing Bank.]
(2) Where any accommodation has been granted by the National Housing Bank to a borrowing institution, all securities held, or which may be held, by such borrowing institution on account of any transaction in respect of which such accommodation has been granted, shall be held by such institution in trust for the National Housing Bank.]
1. Ins. by Act 15 of 2000, s. 9 (w.e.f. 12-6-2000).
Section 17 Power to transfer rights.
The rights and interests of the National Housing Bank (including any other rights incidental thereto) in relation to any loan or advance made, or any amount recoverable, by it, may be transferred by the National Housing Bank, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument by endorsement, or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred, and the National Housing Bank may, notwithstanding such transfer, act as the trustee within the meaning of section 3 of the Indian Trusts Act, 1882 (2 of 1882), for the transferee.
Section 18 Power to acquire rights.
The National Housing Bank shall have the right to acquire, by transfer or assignment, the rights and interests of any 1[institution] (including any other rights incidental thereto) in relation to any loan or advance made, or any amount recoverable by such institution, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred.
1. Subs. by Act 15 of 2000, s. 10, for "housing finance institution" (w.e.f. 12-6-2000).