14. Business of the National Housing Bank.—Subject to the provisions of this Act, the National
Housing Bank may transact all or any of the following kinds of business, namely:—
(a) promoting, establishing, supporting or aiding in the promotion, establishment and support of
housing finance institutions;
1
[(b) making of loans and advances or rendering any other form of financial assistance
whatsoever for housing activities to housing finance institutions, scheduled banks, state co-operative
agricultural and rural development banks or any other institution or class of institutions as may be
notified by the Central Government;
(ba) making of loans and advances for housing or residential township-cum-housing development
or slum clearance projects;]
(c) subscribing to or purchasing stocks, shares, bonds, debentures and securities of every other
description;
(d) guaranteeing the financial obligations of housing finance institutions and underwriting the
issue of stocks, shares, bonds, debentures and securities of every other description of housing finance
institutions;
1. Subs. by Act 15 of 2000, s. 7, for clause (b) (w.e.f. 12-6-2000).
9
(e) drawing, accepting, discounting or rediscounting, buying or selling and dealing in bills of
exchange, promissory notes, bonds, debentures, hundies, coupons and other instruments by whatever
name called;
1
[(ea) buying, selling or otherwise dealing in any loans or advances secured by mortgage or
charge of the immovable property relating to scheduled banks or housing finance institutions;
(eb) creating one or more trusts and transferring loans or advances together with or without
securities therefor to such trusts for consideration;
(ec) setting aside loans or advances held by the National Housing Bank and issuing and selling
securities based upon such loans or advances so set aside in the form of debt obligations, trust
certificates of beneficial interest or other instruments, by whatever name called, and to act as trustee
for the holders of such securities;
(ed) setting up of one or more mutual funds for undertaking housing finance activities;
(ee) undertaking or participating in housing mortgage insurance;]
2
[(f) promoting, forming, conducting or associating in the promotion, formation or conduct of
companies, mortgage banks, subsidiaries, societies, trusts or such other association of persons as it
may deem fit for carrying out all or any of its functions under this Act;]
(g) undertaking research and surveys on construction techniques and other studies relating to or
connected with shelter, housing and human settlement;
(h) formulating one or more schemes, for the purpose of mobilisation of resources and extension
of credit for housing;
3
[(hh) formulating a scheme for the purpose of accepting deposits referred to in clause (a) of
section 2 of the Voluntary Deposits (Immunities and Exemptions) Act, 1991 (47 of 1991) and
crediting forty per cent. of the amount of such deposits to a special fund created under section 37;]
(i) formulating one or more schemes; for the economically weaker sections of society which may
be subsidised by the Central Government or any State Government or any other source;
(j) organising training programmes, seminars and symposia on matters relating to housing;
(k) providing guidelines to the housing finance institutions to ensure their growth on sound lines;
(l) providing technical and administrative assistance to housing finance institutions;
(m) co-ordinating with the Life Insurance Corporation of India the Unit Trust of India, the
General Insurance Corporation of India and other financial institutions, in the discharge of its overall
functions;
(n) exercising all powers and functions in the performance of duties entrusted to the National
Housing Bank under this Act or under any other law for the time being in force;
(o) acting as agent of the Central Government, the State Government or the Reserve Bank or of
any authority as may be authorised by the Reserve Bank;
(p) any other kind of business which the Central Government may, on the recommendation of the
Reserve Bank, authorise;
(q) generally, doing of all such matters and things as may be incidental to or consequential upon
the exercise of its powers or the discharge of its duties under this Act.
15. Borrowings and acceptance of deposits by National Housing Bank.—(1) The National
Housing Bank may, for the purpose of carrying out its functions under this Act—
1. Ins. by Act 15 of 2000, s. 7 (w.e.f. 12-6-2000).
2. Subs. by Act 15 of 2000, s. 7, for clause (f) (w.e.f. 12-6-2000).
3. Ins. by Act 47 of 1991, s. 5 (w.e.f. 20-9-1991).
10
(a) issue and sell bonds and debentures with or without the guarantee of the Central Government,
in such manner and on such terms as may be prescribed;
(b) borrow money from 1
[the Central Government, scheduled banks, financial institutions, mutual
funds] and from any other authority or organisation or institution approved by that Government on
such terms and conditions as may be agreed upon;
(c) accept deposits repayable after the expiry of 2
[such period and] on such terms as may
generally or specially be approved by the Reserve Bank:
3
[Provided that nothing contained in this clause shall apply to deposits accepted under the scheme
formulated by the Bank in pursuance of clause (hh) of section 14;]
(d) borrow money from the Reserve Bank—
4
[(i) by way of loans and advances and generally obtain financial assistance in such manner
or on such terms and conditions as may be specified by the Reserve Bank;]
(ii) out of the National Housing Credit (Long Term Operations) Fund established under
section 46D of the Reserve Bank of India Act, 1934 (2 of 1934) or any of the purposes
specified in that section;
(e) receive for services rendered, such remuneration, commission, commitment charges,
consultancy charges, service charges, royalties, premia, licence fees and any other consideration of
whatever description;
(f) receive gifts, grants, donations or benefactions from Government or any other source.
(2) The Central Government may, on a request being made to it by the National Housing Bank,
guarantee the bonds and debentures issued by the National Housing Bank as to the repayment of principal
and the payment of interest at such rate as may be fixed by that Government.
16. Loans in foreign currency.—(1) Notwithstanding anything contained in 5
[the Foreign Exchange
Management Act, 1999 (42 of 1999)] or in any other law for the time being in force relating to foreign
exchange, the National Housing Bank may, for the purpose of making loans and advances under this Act,
borrow in such manner and on such conditions as may be prescribed in consultation with the Reserve
Bank and with the previous approval of the Central Government, foreign currency from any bank or
financial institution in India or elsewhere.
(2) The Central Government may, where necessary, guarantee any loan taken by the National
Housing Bank under sub-section (1) or any part thereof as to the repayment of principal and the payment
of interest and other incidental charges.
6
[16A. Assistance to borrower when to operate or a charge in the property offered as
security.—(1) Where any person or institution seeks any financial assistance from the National Housing
Bank on the security of any immovable property belonging to him or to that institution or on the security
of the property of some other person whose property is offered as a collateral security for such assistance,
such person or institution or, as the case may be, such other person may execute a written declaration in
the form set out in the Third Schedule to this Act stating therein the particulars of the immovable property
which is proposed to be offered as security, or as the case may be, collateral security, for such assistance
and agreeing that the dues relating to the assistance, if granted, shall be a charge on such immovable
property and, if on receipt of such declaration, the National Housing Bank grants any financial assistance
to the person or institution aforesaid, the dues relating to such assistance shall, without prejudice to the
rights of any other creditor holding any prior charge or mortgage in respect of the immovable property so
1. Subs. by Act 15 of 2000, s. 8, for “the Central Government” (w.e.f. 12-6-2000).
2. Subs. by s. 8, ibid., for “a period which shall not be less than twelve months from the date of the making of the deposit”
(w.e.f. 12-6-2000).
3. Added by Act 47 of 1991, s. 5 (w.e.f. 20-9-1991).
4. Subs. by Act 15 of 2000, s. 8, for sub-clause (i) (w.e.f. 12-6-2000).
5. Subs. by Act 13 of 2018, s. 168, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973) (w.e.f. 1-6-2018).
6. Ins. by Act 15 of 2000, s. 9 (w.e.f. 12-6-2000).
11
specified, be, by virtue of the provisions of this section, a charge on the property specified in the
declaration aforesaid.
(2) Where any further immovable property is offered by a person or an institution as security for the
financial assistance referred to in sub-section (1), such person or institution may execute a fresh
declaration, as far as may be in the form set out in the Third Schedule to this Act, whereupon the dues
relating to such assistance shall, by virtue of the provisions of this section, also be a charge on the
property specified in such fresh declaration.
(3) A declaration made under sub-section (1) or sub-section (2) may be varied or revoked at any time
by the person or institution as aforesaid, with the prior approval of the National Housing Bank.
(4) Every declaration made under sub-section (1) or sub-section (2) shall be deemed to be a document
registrable as an agreement under the provisions of the Registration Act, 1908 (16 of 1908) and no such
declaration shall have effect unless it is so registered.
16B. Amount and security to be held in trust.—(1) Any sums received by a borrowing institution
in repayment or realisation of loans and advances financed or refinanced either wholly or partly by the
National Housing Bank shall, to the extent of the accommodation granted by the National Housing Bank
and remaining outstanding, be deemed to have been received by the borrowing institution in trust for the
National Housing Bank, and shall accordingly be paid by such institution to the National Housing Bank.
(2) Where any accommodation has been granted by the National Housing Bank to a borrowing
institution, all securities held, or which may be held, by such borrowing institution on account of any
transaction in respect of which such accommodation has been granted, shall be held by such institution in
trust for the National Housing Bank.]
17. Power to transfer rights.—The rights and interests of the National Housing Bank (including any
other rights incidental thereto) in relation to any loan or advance made, or any amount recoverable, by it,
may be transferred by the National Housing Bank, either in whole or in part, by the execution or issue of
any instrument or by the transfer of any instrument by endorsement, or in any other manner in which the
rights and interests in relation to such loan or advance may be lawfully transferred, and the National
Housing Bank may, notwithstanding such transfer, act as the trustee within the meaning of section 3 of
the Indian Trusts Act, 1882 (2 of 1882), for the transferee.
18. Power to acquire rights.—The National Housing Bank shall have the right to acquire, by transfer
or assignment, the rights and interests of any 1
[institution] (including any other rights incidental thereto)
in relation to any loan or advance made, or any amount recoverable by such institution, either in whole or
in part, by the execution or issue of any instrument or by the transfer of any instrument or in any other
manner in which the rights and interests in relation to such loan or advance may be lawfully transferred.
2
[18A. Exemption from registration.—Notwithstanding anything contained in sub-section (1) of
section 17 of the Registration Act, 1908 (16 of 1908),—
(a) any instrument in the form of debt obligations or trust certificate of beneficial interest or other
instruments, by whatever name called, issued by the National Housing Bank to securities the loans
granted by the housing finance institutions and scheduled banks, and not creating, declaring,
assigning, limiting or extinguishing any right, title or interest, to or in immovable property except in
so far as it entitles the holder to an undivided interest afforded by a registered instrument, whereby
the National Housing Bank has acquired the rights and interests in relation to such loans and in
securities therefor; or
(b) any transfer of such instruments referred to in clause (a),
shall not require compulsory registration.
1. Subs. by Act 15 of 2000, s. 10, for “housing finance institution” (w.e.f. 12-6-2000).
2. Ins. by s. 11, ibid. (w.e.f. 12-6-2000).
12
18B. Recovery of dues as arrears of land revenue.—Where any amount is due under an agreement
to the National Housing Bank, whether acting as a trustee or otherwise, in respect of securitisation of
loans of housing finance institutions and scheduled banks, the National Housing Bank may without
prejudice to any other mode of recovery make an application to the State Government for the recovery of
the amount due to it, and if the State Government or such authority, as that Government may specify in
this behalf, is satisfied that any amount is due, it may issue a certificate for the amount to the Collector
and the Collector shall proceed to recover that amount in the same manner as arrears of land revenue.]
19. Power to impose conditions for accommodation.—In entering into any transaction under this
Chapter with any borrowing 1
[institutions], the National Housing Bank may impose such conditions as it
may think necessary or expedient for protecting the interests of the National Housing Bank.
20. Power to call for repayment before agreed period.—Notwithstanding anything to the contrary
contained in any agreement, the National Housing Bank may, by notice in writing, require any borrowing
1
[institutions] to discharge forthwith in full its liabilities to the National Housing Bank—
(a) if it appears to the Board that false or misleading information in any material particular was
given in the application for the loan or advance; or
(b) if the borrowing 1
[institutions] has failed to comply with any of the terms of the agreement
with the National Housing Bank in the matter of the loan or advance; or
(c) if there is a reasonable apprehension that the borrowing 1
[institutions] is unable to pay its
debts or that proceedings for liquidation may be commenced in respect thereof; or
(d) if for any reason, it is necessary so to do to protect the interests of the National Housing Bank.
21. National Housing Bank to have access to records.—(1) The National Housing Bank shall have
free access to all such records of any 1
[institutions] which seeks to avail of any credit facilities from the
National Housing Bank and to all such records of any person who seeks to avail of any credit facilities
from such 1
[institutions], the perusal of which may appear to the national Housing Bank to be necessary
in connection with the providing of finance or other assistance to such 1
[institutions] or the refinancing of
any loan or advance made to such person by that 1
[institutions].
(2) The National Housing Bank may require any institution or person referred to in sub-section (1), to
furnish to it copies of any of the records referred to in that sub-section and the institution or the person, as
the case may be, shall be bound to comply with such requisition.
22. Validity of loan or advance not to be questioned.—Notwithstanding anything to the contrary
contained in any other law for the time being in force, the validity of any loan or advance made by the
National Housing Bank in pursuance of the provisions of this Act shall not be called in question merely
on the ground of non-compliance with the requirements of such other law or of any resolution, contract,
or any instrument regulating the constitution of the borrowing 1
[institutions]:
Provided that nothing in this section shall enable any company or co-operative society to obtain any
loan or advance where the instrument relating to the constitution of such company or co-operative society
does not empower such company or co-operative society so to do.
23. National Housing Bank not to make loans or advances against its own bonds or
debentures.—The National Housing Bank shall not make any loan or advance on the security of its own
bonds or debentures.
24. Power to inspect.—(1) The National Housing Bank may at any time and shall, on being directed
so to do by the Reserve Bank, cause an inspection to be made by one or more of its officers of any
1
[institutions] to which the National Housing Bank has made any loan or advance or granted any other
financial assistance, and its books, accounts and other documents; and the National Housing Bank shall
supply to the 1
[institutions] a copy of its report on such inspection.
(2) It shall be the duty of every officer, employee or other person or persons incharge of the whole or
part of the affairs of the 1
[institutions] to produce to any officer making an inspection under
1. Subs. by Act 15 of 2000, s. 12, for “housing finance institutions” (w.e.f. 12-6-2000).
13
sub-section (1), all such books, accounts and other documents in his custody or power and to furnish
within such time as the said officer may specify, any statements, information relating to the affairs of the
1
[institutions] as the said officer may require of him.
25. Power to collect credit information.—(1) The National Housing Bank may, for the purpose of
the efficient discharge of its functions under this Act, at any time direct any 1
[institutions] to submit to it
credit information in such form and within such time as may be specified by the National Housing Bank
from time to time.
(2) Every 1
[institutions] shall, notwithstanding anything to the contrary contained in any law for the
time being in force or in any instrument regulating the constitution thereof or in any agreement executed
by it, relating to the secrecy of its dealings with its constituents, be bound to comply with any directions
issued under sub-section (1).
(3) The National Housing Bank may, for the purpose of the efficient discharge of its functions under
this Act collect from the Central and State Governments, local authorities, the Reserve Bank, any bank or
such financial or other institutions as the Reserve Bank may specify in this behalf, credit information or
other information.
Explanation.—For the purposes of this section and section 26, credit information means any
information relating to—
(i) the amount of loans and advances and other credit facilities granted for the purpose of housing;
(ii) the nature of security taken for such loans, advances or other credit facilities;
(iii) the guarantees furnished; and
(iv) any other information which has a bearing on the credit-worthiness of the borrower.
26. Power to publish information.—The National Housing Bank, if it considers it in the public
interest so to do, may publish any credit information or other information obtained by it under this Act, in
such consolidated form or in any other form as it thinks fit.
27. Advisory services.—The National Housing Bank may provide advisory services to the Central
and State Governments, local authorities and other agencies connected with housing, in respect of—
(a) formulation of overall policies aimed at promoting the growth of housing and housing finance
institutions;
(b) legislation relating to matters having a bearing on shelter, housing and human settlement.