RBI To Introduce Scale-Based Regulation For NBFCs: Motilal Oswal
Reserve Bank of India (RBI). 

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

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


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.