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    Question

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

    effective in 2026, which of the following NBFC layers includes "Systemically Important NBFCs" (with an asset size of ₹1,000 crore and above) and those that are permitted to accept public deposits?
    A NBFC - Base Layer (NBFC-BL) Correct Answer Incorrect Answer
    B NBFC - Middle Layer (NBFC-ML) Correct Answer Incorrect Answer
    C NBFC - Upper Layer (NBFC-UL) Correct Answer Incorrect Answer
    D NBFC - Top Layer (NBFC-TL) Correct Answer Incorrect Answer
    E NBFC - Microfinance Layer (NBFC-MFL) Correct Answer Incorrect Answer

    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.

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