NHB Current Affairs - 2020

SIDBI launches “Swavalamban Express” to promote business aspirants

On March 19, 2020, the Small Industries Development Bank of India (SIDBI) announced Swavalamban Express.

Highlights

The Train is to visit 11 entrepreneurial cities. This includes Delhi, Jammu, Mumbai. Ahmedabad, Hyderabad, Bengaluru, Kolakata, Bhubaneswar and Varanasi. During the period, various workshops and programmes are to be organized. The train has been launched to fulfil India’s goal of 5 trillion USD by 2024-25.

Objective

The train is to cover more than 7,000 km in 15 days. It will connect small enterprises. There is no educational restriction for the journey. Any person between the age of 20 and 35 years can participate.

SIDBI

The SIDBI was established in 1990. It is one of the four All India Financial Institutions that are supervised and regulated by Reserve Bank of India. The other three include NABARD (National Bank for Agriculture and Rural Development), EXIM (Export Import Bank) and NHB (National Housing Bank).

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.