Answer-What is the wrong statement about NBFCs?

Housing Finance companies are regulated by RBI w.e.f 2019 Rest of the statements are true. As per the recent Scale Based Regulation by RBI for NBFCs NBFCs without public funds and customer interface will always remain in the Base Layer of the regulatory structure The extant NPA classification norm stands changed to the overdue period of more than 90 days for all categories of NBFCs. A glide path is provided to NBFCs in Base Layer to adhere to the 90 days NPA norm as under ndash NPA Norms Timeline gt150 days overdue By March 31, 2024 gt120 days overdue By March 31, 2025 gt 90 days By March 31, 2026 The glide path will not be applicable to NBFCs which are already required to follow the 90-day NPA norm. There shall be a ceiling of 1 crore per borrower for financing subscription to Initial Public Offer IPO. NBFCs can fix more conservative limits Please refer to the Circular RBI2021-22112 DOR.CRE.REC.No.6003.10.0012021-22 dated 12.10.2021 for more details also refer to notes on NBFCs

Question

What is the wrong statement about NBFCs?

A There shall be a ceiling of ₹1 crore per borrower for financing subscription to Initial Public Offer (IPO) for listing of NBFCs

B In order to enhance the quality of regulatory capital, NBFC-UL (Upper Layer) shall maintain Common Equity Tier 1 capital of at least 9 per cent of Risk Weighted Assets

C The extant NPA classification norm stands changed to the overdue period of more than 90 days for all categories of NBFCs

D Housing Finance Companies (NBFC-HFC) are regulated by NHB

E NBFCs without public funds and customer interface will always remain in the Base Layer of the regulatory structure