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RBI divided NBFC into how many categories Under the Scale Based Regulation (SBR)?
A)
3
B)
4
C)
5
D)
6

Correct Answer :   4


RBI has divided NBFCs into four layers (or 4 scales) on the basis of size, activity, and perceived riskiness.

* NBFC – Base Layer (NBFC-BL),
* NBFC – Middle Layer (NBFC-ML),
* NBFC – Upper Layer (NBFC-UL)
* NBFC – Top Layer (NBFC-TL).

base layer – It is NBFCs with asset size up to Rs 1000 crore and includes NBFCs P2P and NBFC Account Aggregators.

middle layer – It will have an asset size of over Rs 1,000 crore and housing finance companies. will also include core investment companies, infrastructure finance companies.

Upper layer NBFCs – Is to be identified by the Reserve Bank as warranting enhanced regulatory requirement based on a set of parameters and scoring methodology as provided in the Appendix to this circular.

Top Layer – It will ideally remain empty. it will be used when there is a substantial increase in the potential systemic risk from specific NBFCs in the Upper Layer and Such NBFCs will be included to the Top Layer.

Published On : October 24, 2021
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