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?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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