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    Question

    As per RBI’s scale-based regulatory framework, the

    “top layer” of NBFCs currently is:
    A Composed of 5 systemically risky NBFCs Correct Answer Incorrect Answer
    B Occupied by HDB Financial and Tata Capital Correct Answer Incorrect Answer
    C Vacant, reserved for exceptionally risky NBFCs Correct Answer Incorrect Answer
    D Merged with the upper layer Correct Answer Incorrect Answer
    E Designated for cooperative banks only Correct Answer Incorrect Answer

    Solution

    The top layer in the RBI’s four-tier NBFC structure is currently vacant. It is reserved for entities that could pose exceptionally high systemic risks in the future. No NBFC has yet been placed in this category, as the upper layer presently covers the most significant systemically important ones.

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