Correct Option
The National Housing Bank (NHB) was established in 1988 under the National Housing Bank Act, 1987. It was set up as a wholly-owned subsidiary of the Reserve Bank of India (RBI). Its primary mandate was to function as an apex financial institution for housing finance, responsible for promoting and refinancing housing finance institutions across India. Subsequently, the ownership of NHB was transferred to the Government of India.
Incorrect Options
- State Bank of India (SBI) is a public sector commercial bank and was not involved in the establishment of NHB as its parent body.
- ICICI Bank is a private sector commercial bank and had no role in setting up NHB as a subsidiary.
- Life Insurance Corporation of India (LIC) is a public sector life insurance company and was not the parent institution for the establishment of NHB.