Under the RBI's Scale-Based Regulation (SBR) framework

Solution

The Scale-Based Regulation (SBR) framework was implem ented by RBI from 2022, that categorizes NBFCs into four distinct layers based on their systemic importance, size and perceived level of risk.

• Base Layer: Includes non-deposit taking NBFCs below ₹1,000 crore asset size.
• Middle Layer: Includes all deposit-taking NBFCs (regardless of size) and non-deposit taking NBFCs with an asset size of ₹1,000 crore and above.
• Upper Layer: Includes those NBFCs specifically identified by the RBI as warranting enhanced regulatory discipline based on a set of parameters/scoring.
• Top Layer: Stays empty unless the RBI believes a specific NBFC in the Upper Layer poses an extreme systemic risk.