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RBI sells entire stake in Nabard, NHB; Salim Khan, Helen conferred with Deenanath Mangeshkar Award– Current Affairs

The second Narasimham committee report had stated that RBI could not own entities that are regulated by it.

Apr 25, 2019 14:48 IST
RBI sells entire stake in Nabard, NHB

Story 1- RBI sells entire stake in NHB, Nabard to Government

The Reserve Bank of India has sold its entire stake in the National Housing Bank (NHB) and the National Bank for Agriculture & Rural Development (Nabard) to the Union Government for Rs 1,450 crore and Rs 20 crore, respectively. The move would now make these organisations fully government-owned.

In a statement, the central bank revealed that it had sold its stakes in NABARD and in the National Housing Bank on February 26 and March 19 respectively. With this divestment, the government now holds 100 percent stake in both these financial institutions.

Significance

The move is a part of ending the cross-holding in regulatory institutions. It follows the recommendation of the second Narasimham committee report of October 2001 and the RBI's own discussion paper on the same entitled 'Harmonizing the role and operations of development financial institutions and banks.'

Key Highlights

The second Narasimham committee report had stated that RBI could not own entities that are regulated by it.

Based on the committee’s recommendations, the central bank had proposed to transfer its ownership in SBI, NHB and Nabard to the government in October 2001.

Accordingly, on June 29, the government had bought out RBI’s entire 59.7 percent stake in SBI.

The disinvestment of RBI’s shareholding in NABARD was done in two phases. The central bank held 72.5 percent equity in Nabard worth Rs 1,450 crore, of which 71.5 percent amounting to Rs 1,430 crore were divested way back in October 2010 and the residual shareholding was divested on February 26, 2019.

In case of NHB, the RBI held 100 percent shareholding in the financial institution, which was divested on March 19, 2019.

The current change in the capital structure of both these financial institutions was brought in by the government through amendments to the Nabard Act of 1981 and the NHB Act of 1987 which were notified on January 19, 2018 and March 29, 2018, respectively.

Background

The National Bank for Agriculture & Rural Development was established on July 12, 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation.

Set up with an initial capital of Rs 100 crore, the finance institution's paid up capital stood at Rs 10,580 crore as of March 2018.

On the other hand, the decision to establish the National Housing Bank was announced in the 1987-88 budget, following which, the NHB Bill, providing a legislative framework for the NHB, was passed by parliament in the Winter session of 1987 and it became an Act on December 23, 1987.

The National Housing Policy of 1988 envisaged setting up of NHB as the apex level institution for promoting the housing sector.

Story 2- Madhur Bhandarkar, Salim Khan and Helen honoured with Deenanath Mangeshkar Award

Popular scriptwriter Salim Khan, national award-winning filmmaker Madhur Bhandarkar and one of the finest dancing divas of yesteryears, Helen were honoured with the prestigious Master Deenanath Mangeshkar Award at a ceremony in Mumbai on April 24, 2019.

The awards were given away by Rashtriya Swayamsewak Sangh (RSS) Chief Mohan Bhagwat and the function was presided over by the Directorate General of CRPF, Vijay Kumar.

Key Awards

Lifetime Award:
Actor, producer and screenwriter Salim Khan, who is also the father of superstar Salman Khan, was honoured with the Master Deenanath Mangeshkar Lifetime Award.

Special Award: Filmmaker Madhur Bhandarkar received the Master Deenanath Mangeshkar Special Award for his contribution to Indian cinema.

Special Award: The yesteryear Actress Helen was conferred with Master Deenanath Mangeshkar Special Award.

Music and Art: The Master Deenanath Mangeshkar Award for music and art was conferred to classical dancer Sucheta Bhide-Chapekar.

Other Awards

Vagvilasini Award:
The award went to Marathi poet and writer Vasant Abaji Dahake.

Mohan Wagh Award: The award went to Bhadrakali Productions.

Best Drama of the Year: The award went to a Marathi Drama play Soyare Sakal.

Anandmayee Puraskar:
The Puraskar was given to Pandit Suresh Talwalkar of Taalyogi Ashram.

This time, the Deenanath Mangeshkar Pratishthan handed over a token of appreciation to honour the victims of the February 14 Pulwama terror attack. For the same cause, legendary singer Lata Mangeshkar has donated Rs 1 crore in memory of her father Deenanath Mangeshkar.

Master Deenanath Mangeshkar Awards

Master Deenanath Mangeshkar awards are conferred to legends from the field of music, drama, art and social work.

The awards were instituted by the Master Deenanath Mangeshkar Smruti Pratishthan, a charitable trust in Pune, which was established and nurtured over the last 30 years by the Mangeshkar family.

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