RBI To Introduce Scale-Based Regulation For NBFCs: Motilal Oswal

RBI To Introduce Scale-Based Regulation For NBFCs: Motilal Oswal

Reserve Bank of India (RBI). 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Reserve Bank of India released a discussion paper on revised regulations for non-banking financial companies. The paper introduces a scale-based approach to regulation from a ‘systemic significance’ vantage point.

NBFCs would be categorised across four different layers (base, middle, upper, and top) based on various parameters including size, inter-connectedness with the system, etc.

The level of regulation/compliance requirement increases with each layer. More than 97% of NBFCs would be in the base layer, where no meaningful changes are suggested. These are NBFCs with a sub-Rs 10 billion asset size.

Click on the attachment to read the full report:

Motilal Oswal NBFC Sector Update.pdf
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