Section 30 of The National Housing Bank Act, 1987
1[30. Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money-- The Reserve Bank may, if it considers necessary in the public interest so to do, by general or special order,--
- (a)regulate or prohibit the issue by any housing finance institution which is a company of any prospectus or advertisement soliciting deposits of money from the public; and
- (b)specify the conditions subject to which any such prospectus or advertisement, if not prohibited, may be issued.]
Summary
- This section empowers the Reserve Bank to control how housing finance companies advertise for public deposits.
- The Reserve Bank can issue general or special orders regarding these advertisements.
- If it is in the public interest, the Reserve Bank can completely prohibit a company from issuing prospectuses or adverts.
- When an advertisement is allowed, the Reserve Bank can specify the exact conditions for its release.
Practical examples
FAQ
1. Can the Reserve Bank ban deposit advertisements under Section 30 of The National Housing Bank Act, 1987?
Yes, under Section 30 of The National Housing Bank Act, 1987, the Reserve Bank can prohibit the issue of any advertisement soliciting deposits if it is necessary for the public interest.
2. Does Section 30 of the 1987 Housing Act apply to all types of businesses?
No, Section 30 of the 1987 Housing Act specifically applies to any housing finance institution which is a company.
3. What happens if an advertisement is not banned under Section 30 of the National Housing Bank Act?
If not prohibited, Section 30 of the National Housing Bank Act allows the Reserve Bank to specify the exact conditions under which the advertisement may be issued.
Test yourself
Q1.Under Section 30 of The National Housing Bank Act, 1987, what is the primary reason the Reserve Bank would intervene in a company's advertising?
Q2.Which entity is granted the power to regulate prospectuses under Section 30 of the housing finance law?
Q3.According to Section 30 of The National Housing Bank Act, 1987, what specific type of institution is regulated by this rule?
Q4.If the Reserve Bank decides not to completely ban a deposit advertisement under Section 30 of the 1987 Housing Act, what can it do instead?