SBI–NHB & Mortgage Securities

SBI announced acquisition of 10% stake of National Housing Bank (NHB) in RMBS Development Company Ltd (RDCL).

Important Facts

• NHB stake falls from 39% → 29%

• RDCL established in 2024

• Paid-up capital: ₹500 crore

• Objective: Develop India's Residential Mortgage-Backed Securities (RMBS) market.  

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What is RMBS?

Residential Mortgage-Backed Securities are financial securities backed by a pool of housing loans.

Why Important?

It can:

• Pool housing loans

• Convert loans into tradable securities

• Release capital

• Improve liquidity

• Support additional lending.

UPSC Economy Link: Financial markets + housing finance + securitisation.