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    Question

    The Reserve Bank of India ( RBI ) regulates the

    functioning and operations of Non - Banking Financial Companies ( NBFCs ) in India . To ensure financial stability, the RBI has introduced regulations regarding the number of layers of NBFCs in a group structure . According to the RBI guidelines, what is the maximum number of layers of NBFCs allowed in a group structure?
    A 2 layers Correct Answer Incorrect Answer
    B 3 layers Correct Answer Incorrect Answer
    C 4 layers Correct Answer Incorrect Answer
    D 5 layers Correct Answer Incorrect Answer
    E No specific limit Correct Answer Incorrect Answer

    Solution

    Explanation : The RBI in October 2021 announced to put in place a four - layered regulatory structure for non - banking financial companies ( NBFCs ) to keep a stricter vigil on the shadow banking sector and minimise risks for the overall financial system.

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