Section 39 of The National Housing Bank Act, 1987 in hindi
After making provision for bad and doubtful debts, depreciation of assets and all other matters for which provision is necessary or expedient or which is usually provided for by bankers, the National Housing Bank shall transfer--
- (i)for a period of fifteen years, following the accounting year during which the National Housing Bank is established, the amount remaining (hereafter in this section referred to as surplus) such of the funds referred to in section 37 as the Reserve Bank may specify; and
- (ii)after the expiry of the said period of fifteen years, the National Housing Bank shall, after making provision for the funds referred to in section 37, transfer the balance of surplus to 1[the Central Government].
Summary
- This section dictates how the National Housing Bank must handle its financial surplus after accounting for necessary deductions.
- It requires the bank to first make provisions for bad and doubtful debts, depreciation of assets, and other standard banking provisions.
- It sets a fifteen-year transitional period from the bank establishment where surplus funds are transferred to specific funds directed by the Reserve Bank.
- It establishes that after the initial fifteen-year period ends, any remaining surplus must be transferred directly to the Central Government.
Practical examples
FAQ
1. What deductions must be made before determining the surplus under Section 39 of The National Housing Bank Act, 1987?
Section 39 of The National Housing Bank Act, 1987 requires provisions for bad and doubtful debts, depreciation of assets, and other matters usually provided for by bankers.
2. Where does the surplus go during the first fifteen years according to Section 39 of the NHB Act?
Under Section 39 of the NHB Act, the surplus during the first fifteen years is transferred to funds referred to in section 37, as specified by the Reserve Bank.
3. What happens to the surplus after the fifteen-year period ends under Section 39 of the 1987 housing finance law?
After fifteen years, Section 39 of the 1987 housing finance law dictates that the balance of the surplus is transferred to the Central Government.
Test yourself
Q1.Under Section 39 of The National Housing Bank Act, 1987, what must the bank provide for before declaring a surplus?
Q2.How long is the initial period during which the surplus is handled differently under Section 39 of the NHB Act?
Q3.Once the initial fifteen-year period expires, who receives the balance of the surplus under Section 39 of the 1987 housing finance law?
Q4.This question tests knowledge across related rules. Once the balance sheet is closed on June 30 as required by Section 38, who determines which specific funds receive the surplus during the bank first fifteen years under Section 39 of The National Housing Bank Act, 1987?