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Regulation of NBFCs
January 31 , 2021
1397 days
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- The Reserve Bank of India (RBI) has created a four-tier structure for a tighter regulation of Non-Banking Financial Companies (NBFCs).
- The four-layered structure includes Base Layer, Middle Layer, Upper Layer and a possible Top Layer.
- The RBI has proposed classification of non-performing assets (NPAs) of base layer NBFCs from 180 days to 90 days overdue.
- The responsibility of regulation and supervision has been entrusted with the RBI under the Reserve Bank of India Act, 1934.
About NBFC
- NBFC is a company registered under the Companies Act, 1956.
- NBFC cannot accept the demand deposits.
- They are not the part of the payment and settlement system.
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