RBI proposes graded risk based approach to regulate NBFCs

⛔️The Reserve Bank of India proposed a four- tier regulatory framework for non-banking finance companies based on systemic importance and potential risk to financial system stability . With this while the RBI has sought to bring the NBFC sector on par with banks, it has also assured that the propsoed changes in regulation notwistandting, NBFCs engaged in niche sectors and georaphies will continue to have flexbility in terms of business operations and uniqueness going forward. 4 layers will include NBFC-Base Layer (NBFC-BL) , NBFC -Middle Layer (NBFC ML), NBFC - Upper Layer (NBFC UL) and NBFC - Top Layer (NBFC TL)

📕About Reserve Bank of India

Governor: Shaktikanta Das 

Headquarters: Mumbai

Founder: British Raj

Founded: 1 April 1935, Kolkata

Jurisdiction: India

Reserves: ₹3,830,997 crore (US$540 billion)

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