UPSC Prelims 2007 · General Studies
Question 99: Economy and Social Development
The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following?
AnswerThe answer is (b).
The National Housing Bank was set up in 1988 under the National Housing Bank Act, 1987, as a wholly owned subsidiary of the Reserve Bank of India, to regulate and promote housing finance. State Bank of India, ICICI Bank and LIC have housing finance arms of their own but did not set up the NHB.
Why each option is right or wrong
- (a) SBI did not set up the NHB.
- (b) Correct: the NHB was set up as an RBI subsidiary.
- (c) ICICI Bank did not set up the NHB.
- (d) LIC did not set up the NHB.
Worth knowing: The Reserve Bank's ownership of the NHB was later transferred to the Government of India (2019), so the question is out of date today.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2007, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.