RBI releases list of 15 NBFCs in 'upper layer' under Scale Based Regulations l Hindi l 2023

RBI releases list of 15 NBFCs in 'upper layer' under scale based regulations l Hindi l 2023

The Reserve Bank had issued the Scale Based
Regulation (SBR): A Revised Regulatory Framework
for NBFCs (the framework) on October 22, 2021. Scale based regulation means the level of regulation will
be a function of the size, activity and risk in the
business.

Base Layer (NBFC-BL)
NBFCs in the lowest layer shall be known as NBFC -Base Layer (NBFC-BL).The Base Layer shall comprise of non-deposit taking NBFCs below the asset size of
₹1000 crore.

Middle Layer (NBFC-ML)
(a) all deposit taking NBFCs (NBFC-Ds), irrespective of
asset size
(b) non-deposit taking NBFCs with asset size of ₹1000
crore and above

Upper Layer (NBFC-UL)
The Upper Layer shall comprise of those NBFCs which
are specifically identified by the Reserve Bank as
warranting enhanced regulatory requirement based on as set of parameters and scoring methodology as provided
in the Appendix to this circular

Top Layer (NBFC-TL)
The Top Layer will ideally remain empty.
This layer can get populated if the Reserve Bank is of
the opinion that there is a substantial increase in the
potential systemic risk from specific NBFCs in the Upper
Layer.
Such NBFCs shall move to the Top Layer from the
Upper Layer.