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Scale-Based Regulation for NBFCs
January 2 , 2026
12 hrs 0 min
15
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- The RBI has started a review of the Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies (NBFCs).
- The SBR framework was introduced in 2022 to regulate NBFCs based on their size, risk, and systemic importance.
- Under SBR, NBFCs are classified into Base Layer, Middle Layer, Upper Layer, and Top Layer.
- The review aims to address rising systemic risks and growing links between banks and NBFCs.
- NBFC credit now accounts for nearly 15% of India’s Gross Domestic Product (GDP).
- The review seeks to ensure financial stability and effective supervision of NBFCs.
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