NBFC scale based Regulation T he Scale-Based Regulatory (SBR) approach renders the regulation and supervision of the NBFCs to be a function of their size, activity and perceived riskiness. Subsequently, RBI has issued clarifications on various provisions of the SBR. These regulations would be applicable to NBFCs effective 1 October 2022. However, an amendment with regard to ceiling on an IPO funding is applicable from 1 April 2022.
NBFC regulation- 4 Layer Scale-based regulations came into effect in October 2021 and were implemented a year later by RBI. There are four layers namely the base layer, middle layer, upper layer and top layer