Practice NBFC Questions and Answers

• Scheduled Commercial Banks (SCBs) are permitted to undertake credit card business either independently or in tie-up arrangement with other card-issuing ban...
• Any existing NBFC-ICC (Investment Credit Company) , intending to undertake factoring business, shall make an application to the Reserve Bank for grant of C...
• NBFCs – Middle Layer and NBFCs - Upper Layer with ………………….. and more ’Fixed point service delivery units shall be mandatorily required to...
• Banks can provide Finance to certain NBFCs as per the restrictions provided by RBI, So according to those regulations Banks’ exposures to a single NBFC (...
• What is the minimum net owned fund requirement from NBFC to be eligible to issue credit cards?
• What is the asset size for Non-Deposit taking NBFCs for categorization in Middle layer?
• What is the minimum subscription per borrowers for IPOs under new Scale based regulations of NBFCs
• What is the minimum net owned fun specified for NBFCs with no customer interface and no public deposits
• In how many days categorization of NPAs is required for NBFCs under the new guidelines for them
• How much tier 1 common equity needs to be maintained by NBFCs (Upper Layer)
• What is the minimum capital requirement for an NBFC to be classified as an Infrastructure Finance Company (IFC)?
• Under the RBI's Scale-Based Regulation (SBR) framework effective in 2026, which of the following NBFC layers includes "Systemically Important NBFCs" (wit...
• As per the latest 2026 regulatory norms, what is the Minimum Capital to Risk-Weighted Assets Ratio (CRAR) that must be maintained by an NBFC in the Midd...
• Who bears the overall responsibility for the implementation of ALM systems in an NBFC?
• How many time buckets are prescribed for maturity profiling to measure future cash flows?
• Which approach to liquidity monitoring involves predefined internal limits for ratios like "commercial papers to total assets"?
• An asset or liability is considered "rate sensitive" if:
• LCR requirements are applicable to all NBFC-D and which category of NBFC-ND?
• The LCR is designed to ensure an NBFC has enough HQLA to survive a severe liquidity stress scenario for how many days?
• What is the minimum LCR that an NBFC must maintain on an ongoing basis?
• Which of the following assets qualifies as HQLA with a 0% haircut?
• What is the haircut applied to Common Equity shares included in the NSE CNX Nifty index for HQLA calculation?
• How frequently must NBFCs disclose information regarding their LCR?
• What is the minimum CRAR requirement for NBFC-Middle Layer (NBFC-ML) and above?
• For an NBFC in the Upper Layer (NBFC-UL), what is the minimum Common Equity Tier 1 (CET1) capital requirement?
• Tier 2 capital of an NBFC shall not exceed what percentage of Tier 1 capital?
• What is the maximum permitted leverage ratio for an NBFC-Base Layer (NBFC-BL)?
• Effective from March 31, 2026, the NPA classification norm for all categories of NBFCs will be an overdue period of:
• What general provision is required for "Sub-standard assets"?
• If an asset has been considered "doubtful" for "One to three years," what is the provision required for the secured portion?
• What is the standard asset additional provisioning rate for an NBFC-Middle Layer (NBFC-ML)?
• Housing loans extended at "teaser rates" by an NBFC-UL require a provision of:
• For "Loss Assets," if they are permitted to remain on the books, what provision is required?
• For NBFCs in the Base Layer, what is the ceiling per borrower for financing subscriptions to Initial Public Offers (IPO)?
• An NBFC in the Middle Layer (other than IFC) cannot have exposure to a "single party" exceeding what percentage of its Tier 1 capital?
• The Large Exposure Framework (LEF) is applicable only to which layer of NBFCs?
• Under LEF for an NBFC-UL (other than IFC), what is the absolute maximum limit for exposure to a "Single Counterparty"?
• The Asset Liability Management (ALM) framework is applicable to NBFCs having an asset size of: