Section 29(4) in The National Housing Bank Act, 1987
(4)The National Housing 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 National Housing 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.
