25 YEARS IN INDIA: LEADING WITH IMPACT
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Recent Trends
Scale based regulatory framework - to aid in better governance practices and
structural strengthening of the sector
Classification of NBFCs into various layers as per scale-based approach
Top Layer
This Layer will ideally remain
empty
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
.
Upper Layer
Shall comprise of those NBFCs
which are specifically
identified by the Reserve Bank
as warranting enhanced
regulatory requirement based
on a set of parameters and its
scoring methodology.
The top ten eligible NBFCs in
terms of their asset
size shall always reside in the
upper layer, irrespective of
another factor
0
Middle Layer
All deposit taking NBFCs
(NBFC-Ds)
Non-deposit taking NBFCs with
asset size of 1000 crore+
NBFCs undertaking the
following activities
(i) Standalone Primary Dealers
(SPDs), (ii) Infrastructure Debt
Fund―Non-Banking Financial
Companies (IDF-NBFCs), (iii)
Core Investment Companies
(CICs), (iv) Housing Finance
Companies (HFCs) and (v)
Infrastructure Finance
Companies (NBFC-IFCS)
Base Layer
Non-deposit taking NBFCs below
the asset size of 1000 crore
- NBFCs undertaking the following
activities-
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NBFC-Peer to Peer Lending
Platform (NBFC-P2P)
NBFC-Account Aggregator
(NBFC-AA)
Non-Operative Financial
Holding Company (NOFHC)
NBFCs not availing public funds
and not having any customer
interface
Note: The guidelines to be effective from October 2022
Source: Reserve Bank of India
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