The National Housing Bank Act, 1987

(1) This Act may be called the National HousingBank 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 theOfficial Gazette, appoint, and different dates may be appointed for different provisions of this Act andany reference in any provision to the commencement of this Act shall be construed as a reference tothe coming into force of that provision.

In this Act, unless the context otherwise requires,-- (a) "Board" means the Board of Directors of the National Housing Bank referred to insection 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 ofproviding 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 theReserve Bank of India Act, 1934 (2 of 1934). (j) words and expressions used herein and not defined but defined in the Reserve Bank ofIndia 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 ReserveBank of India Act, 1934 (2 of 1934), but defined in the Banking Regulation Act, 1949 (10 of1949), shall have the meanings respectively assigned to them in the Banking Regulation Act,1949.

(1) With effect from such dateas the Central Government may, by notification, appoint, there shall be established for the purposes ofthis 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 perpetualsuccession and a common seal with power, subject to the provisions of this Act, to acquire, hold anddispose 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 asthe Central Government] may, by notification, specify. (4) The National Housing Bank may establish offices, branches or agencies at any place in India, andwith the previous approval of 2[the Central Government], at any place outside India.

1[4. Capital.--(1) The authorised and paid-up capital of the National Housing Bank shall be threehundred and fifty crores of rupees: 2[Provided that the Central Government may, by notification, increase the authorised capital up to twothousand 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 theincreased authorised capital to 3***, the Central Government, scheduled banks, public financialinstitutions, housing finance institutions or such other institutions, as may be approved by the CentralGovernment: Provided that no increase in the issued capital shall be made in such manner that 3***, the CentralGovernment, public sector banks, public financial institutions or other institutions owned or controlled bythe Central Government, hold in aggregate at any time, less than fifty-one per cent. of the issued capital ofthe National Housing Bank.] 4[(3) The subscribed capital of one thousand four hundred and fifty crore rupees of the NationalHousing Bank, which has been subscribed to by the Reserve Bank, shall stand transferred to, and vestedin the Central Government upon payment of the face value of the subscribed capital, to the Reserve Bankfrom such date as may be notified by the Central Government.]

(1) The general superintendence, direction and management of the affairs andbusiness of the National Housing Bank shall vest in the Board of Directors, which shall exercise allpowers 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 businessprinciples with due regard to public interest. (3) Subject to the provisions of sub-section (1) and save as otherwise provided in the regulationsmade under this Act,-- 1[(a) the Chairman, if he is a whole-time director or if he is holding offices both as the Chairmanand the Managing Director, or (b) the Managing Director, if the Chairman is not if he is whole-time director, or if the Chairmanbeing a whole-time director, is absent,] shall also have powers of general superintendence, direction and management of the affairs and businessof the National Housing Bank and may also exercise all powers and do all acts and things which may beexercised or done by the National Housing Bank and shall act on business principles with due regard topublic interest. (4) The Managing Director shall, in the discharge of his powers and functions, follow such directionsas the Chairman may give. (5) In the discharge of its functions under this Act, the National Housing Bank shall be guided bysuch directions in matters of policy involving public interest as the Central Government 2*** may give inwriting.