RBI to Divest its Entire Stake in NABARD and NHB

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

Disinvestment by RBI

• 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.

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 of were divested in February similarly RBI which held 100% in NHB, which was divested on 19 March 2019.

Month: Current Affairs - April, 2019