National Housing Bank was established in 1987 as a wholly-owned subsidiary of which of the following  1. State Bank of India 2. Life Insurance Corporation of India 3. Reserve Bank of India 4. Industrial Finance Corporation of India ?

Option 3 : 3

National Housing Bank (NHB)

1. It was set up in July 1988 under the National Housing Bank Act, 1987 as the apex bank in the field of housing finance.
2. It is a wholly-owned subsidiary of the Reserve Bank of India. 
3. It is the principal agency to promote housing finance institutions at the regional and local levels and to provide financial and other support to such institutions.
4. NHB has an equity capital of Rs. 300 crores, which is contributed by the Reserve Bank of India.
5. NHB also raises resources through a variety of debt instruments such as bonds, debentures, and borrowings. 
6. Its bonds which are guaranteed by the Government of India, are eligible securities for commercial banks for compiling with the statutory liquidity requirement under the Banking Regulation Act.
7. Moreover, it receives external assistance also from international agencies such as US AID and OECF(Japan). It accepts deposits through Home Loan Accounts maintained by commercial banks.
8. National housing bank provides re-finance to the Housing Finance Companies, which are spread all over the country and account for the major share, followed by commercial banks and co-operative banks and Land Development Banks. 

Therefore, the National Housing Bank was established in 1987 as a wholly-owned subsidiary of the Reserve Bank of India.