Subs. by Act 23 of 2019, s. 154, for sub-sections (1) and (2) (w.e.f. 9-8-2019). — THE NATIONAL HOUSING BANK ACT, 1987

Subs. by Act 23 of 2019, s. 154, for sub-sections (1) and (2) (w.e.f. 9-8-2019).

4. Subs. by Act 23 of 2019, s. 154, for sub-sections (1) and (2) (w.e.f. 9-8-2019). 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— (a) obtaining a certificate of registration issued under this Chapter; and (b) having the net owned fund of ten crore rupees or such other higher amount, as the Reserve Bank may, by notification, specify. (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.] 1* * * * * (4) The 2 [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:— (a) that housing finance institution is or shall be in a position to pay its present or future depositors in full as and when their claims accrue; (b) that the affairs of the housing finance institution are not being or are not likely to be conducted in a manner detrimental to the interest of its present or future depositors; (c) that the general character of the management or the proposed management of the housing finance institution shall not be prejudicial to the public interest or the interests of its depositors; (d) that the housing finance institution has adequate capital structure and earning prospects; (e) that the public interest shall be served by the grant of certificate of registration to the housing finance institution to commence or to carry on the business in India; (f) that the grant of certificate of registration shall not be prejudicial to the operation and growth of the housing finance sector of the country; and (g) any other condition, fulfilment of which in the opinion of the 2 [Reserve Bank], shall be necessary to ensure that the commencement of or carrying on the business in India by a housing finance institution shall not be prejudicial to the public interest or in the interests of the depositors:

Section 4