1. The National Housing Bank the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India
2. The Small Industries Development Bank of India was established as a whollyowned subsidiary of the Industrial Development Bank of India
Which of the statements given above is/are correct?
Explanation
Statement 1 is correct: The National Housing Bank, the apex institution of housing finance in India. It was established on July 9, 1988, under the National Housing Bank Act of 1987. It was initially set up as a wholly-owned subsidiary of the Reserve Bank of India (RBI). However, in 2019, the ownership structure of NHB underwent a significant change. The Government of India acquired the entire stake from the RBI, making NHB a wholly-owned entity of the Government. Given that the question pertains to the year 2004 so the statement is correct.
Statement 2 is correct: The Small Industries Development Bank of India (SIDBI) was established on April 2, 1990, through an Act of Parliament. It was initially incorporated as a whollyowned subsidiary of the Industrial Development Bank of India (IDBI). The Shares of SIDBI are now held by the Government of India and twenty-two other institutions / public sector banks / insurance companies owned or controlled by the Central Government. Its key functions are:
Serves as the Principal Financial Institution for the MSME sector. Promotes, finances, and facilitates the development of Micro, Small, and Medium Enterprises (MSMEs). Provides credit, refinance, and developmental support to small industries. Plays a vital role in employment generation and inclusive economic development. Its operations support the government’s initiatives for the growth of small scale industries.