Current Affairs

RBI Sells its Entire Stake in NABARD and NHB

The Reserve Bank of India (RBI) has sold its entire stake in the National Bank for Agriculture & Rural Development (NABARD) and National Housing Bank for Rs 20 crore and Rs 1,450 crore respectively.
RBI Sells its Entire Stake in NABARD and NHB

Details:

  • The decision to divest its entire stake was taken based on the recommendations of the second Narasimham Committee.
  • The committee had stated that RBI could not own those entities which are regulated by it.
  • The Government now holds a 100 per cent stake in both NHB and NABARD.

One must know:

  • Earlier in June 2018, the Government had bought out the entire 59.7 per cent stake in SBI from the Reserve Bank.
  • The RBI in 2010 divested 71.5% of 72.5% of its shares in NABARD and the remaining were divested in February 2019.
  • Similarly, RBI which held 100% in NHB, divested its stake on 19 March 2019.

Question:

Q.Who has sold its entire stake in the National Bank for Agriculture & Rural Development (NABARD) and National Housing Bank for Rs 20 crore and Rs 1,450 crore respectively?
a. Food Corporation of India (FCI)
b. Industrial Finance Corporation of India (IFCI)
c. National Stock Exchange (NSE)
d. Reserve Bank of India (RBI)
RBI Sells its Entire Stake in NABARD and NHB RBI Sells its Entire Stake in NABARD and NHB Reviewed by Neha on April 26, 2019 Rating: 5

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