Under RBI's Scale-Based Regulation (SB

Under RBI's SBR framework: Base Layer (lightest — smaller NBFCs with minimal systemic risk); Middle Layer (moderate regulation); Upper Layer (most stringent ongoing regulation — the 15 largest, most systemically important NBFCs placed here, subject to enhanced capital, leverage, governance, and disclosure requirements nearly equivalent to banks); Top Layer (a reserve/emergency category for extreme systemic risk — currently no NBFC is placed here and it may remain empty under normal circumstances). The Upper Layer essentially bridges the regulatory gap between regular NBFCs and banks, given these entities' systemic significance.