Section 29A: Requirement of registration and net owned fund.

Q: What does Section 29A of The National Housing Bank Act, 1987 (NHB Act) deal with?

Section 29A NHB Act pertains to "Requirement of registration and net owned fund.". It is part of the The National Housing Bank Act, 1987, a legislation enacted by the Parliament of India. Section 29A of The National Housing Bank Act, 1987 (NHB Act) governs requirement of registration and net owned fund. As verified on 22 May 2026.

Q: Is Section 29A NHB Act still in force?

Yes, Section 29A of the The National Housing Bank Act, 1987 is currently in force across the Republic of India.

Q: What is धारा 29A NHB Act?

धारा 29A NHB Act is the Devanagari Hindi reference for Section 29A of the The National Housing Bank Act, 1987. Section 29A of The National Housing Bank Act, 1987 (NHB Act) governs requirement of registration and net owned fund. As verified on 22 May 2026.

Q: What is Dhara 29A NHB Act?

Dhara 29A NHB Act is the Roman Hindi reference for Section 29A of the The National Housing Bank Act, 1987. "Dhara" means "Section" in Hindi. Section 29A of The National Housing Bank Act, 1987 (NHB Act) governs requirement of registration and net owned fund. As verified on 22 May 2026.

Q: How to cite Section 29A of The National Housing Bank Act, 1987?

Cite as: "Section 29A, The National Housing Bank Act, 1987 (NHB Act)" in legal briefs. For academic writing, use the BlueBook format: The National Housing Bank Act, 1987, 1987, § 29A (India).

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Table of Contents

The National Housing Bank Act, 1987

Chapter V — PROVISIONS RELATING TO HOUSING FINANCE INSTITUTIONS RECEIVING DEPOSITS

Section 29A

Requirement of registration and net owned fund.

1[29A. Requirement of registration and net owned fund.— 2[(1) Notwithstanding anything contained in this Chapter or in any other law for the time being in force, no housing finance institution which is a company shall commence housing finance as its principal business or carry on the business of housing finance as its principal business without—

(2) Every housing finance institution which is a company shall make an application for registration to the Reserve Bank in such form as may be specified by the Reserve Bank:

Provided that an application made by a housing finance institution which is a company to the National Housing Bank and pending for consideration with the National Housing Bank as on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, shall stand transferred to the Reserve Bank and thereupon the application shall be deemed to have been made under the provisions of this sub-section and shall be dealt with accordingly:

Provided further that the provisions of this sub-section shall not apply to the housing finance institution which is a company and having a valid registration certificate granted under sub-section (5) on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, and such housing finance institution shall be deemed to have been granted a certificate of registration under the provision of this Act.]

3* * * * *

(4) The 4[Reserve Bank], for the purpose of considering the application for registration, may require to be satisfied by an inspection of the books of such housing finance institution or otherwise that the following conditions are fulfilled:—

5[Provided that the Reserve Bank may, wherever it considers necessary so to do, require the National Housing Bank to inspect the books of such housing finance institution and submit a report to the Reserve Bank for the purpose of considering the application.]

(5) The 4[Reserve Bank] may, after being satisfied that the conditions specified in sub-section (4) are fulfilled, grant a certificate of registration subject to such conditions which it may consider fit to impose.

(6) The 4[Reserve Bank] may cancel a certificate of registration granted to a housing finance institution under this section if such institution—

Provided that before cancelling a certificate of registration on the ground that the 7[housing finance institution which is a company] has failed to comply with the provisions of clause (ii) or has failed to fulfil any of the conditions referred to in clauses (a) to (g) of sub-section (4), the 8[Reserve Bank], unless it is of the opinion that the delay in cancelling the certificate of registration shall be prejudicial to public interest or the interest of the depositors or the 7[housing finance institution which is a company], shall give an opportunity to such institution on such terms as the 8[Reserve Bank] may specify for taking necessary steps to comply with such provision or fulfilment of such condition:

Provided further that before making any order of cancellation of certificate of registration, such institution shall be given a reasonable opportunity of being heard.

(7) A housing finance institution aggrieved by the order or rejection of application for registration or cancellation of certificate of registration may prefer an appeal, within a period of thirty days from the date on which such order of rejection or cancellation is communicated to it, to the Central Government and the decision of the Central Government where an appeal has been preferred to it, or of the 8[Reserve Bank] where no appeal has been preferred, shall be final:

Provided that before making any order of rejection of appeal, such institution shall be given a reasonable opportunity of being heard.

Explanation.—For the purposes of this section,—

(I) "net owned fund " means—

(1) investments of such institution in shares of—

9[(iii) all other housing finance companies; and]

(2) the book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to, and deposits with,—

10[(II) the expressions subsidiaries and companies in the same group shall have the meanings respectively assigned to them in the Companies Act, 2013 (18 of 2013):

Provided that the National Housing Bank shall, in consultation with the Reserve Bank, specify the companies to be deemed to be in the same group.]

1. Ins. by Act 15 of 2000, s. 13 (w.e.f. 12-6-2000).

2. Subs. by Act 23 of 2019, s. 154, for sub-sections (1) and (2) (w.e.f. 09-08-2019).

3. Sub-section (3) omitted by Act 23 of 2019, s. 154 (w.e.f. 09-08-2019).

4. Subs. by s. 154, ibid., for "National Housing Bank " (w.e.f. 09-08-2019).

5. Ins. by s. 154, ibid. (w.e.f. 09-08-2019).

6. Subs. by Act 23 of 2019, s. 154, for "National Housing Bank " (w.e.f. 09-08-2019).

7. Subs. by Act 23 of 2019, s. 154, for "housing finance institution " (w.e.f. 09-08-2019).

8. Subs. by s. 154, ibid., for "National Housing Bank " (w.e.f. 09-08-2019).

9. Subs. by s. 154, ibid., for sub-item (iii) (w.e.f. 09-08-2019).

10. Subs. by s. 154, ibid., for clause (II) (w.e.f. 09-08-2019).

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