The Reserve Bank of India (RBI) introduced a revised scale-based regulation (SBR) framework for Non-Banking Financial Companies (NBFCs), aiming to strengthen financial stability and improve regulatory oversight. The updated norms will apply equally to bank-owned NBFCs, ensuring regulatory consistency across the sector. The SBR framework classifies NBFCs into different layers — Base, Middle, Upper, and Top — based on their size, activity, and risk profile, with each layer subject to distinct regulatory requirements.
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RBI Introduces Revised Scale-Based Regulation Framework for NBFCs to Strengthen Financial Stability
Key Points
- The Reserve Bank of India (RBI) introduced a revised scale-based regulation (SBR) framework for Non-Banking Financial Companies (NBFCs), aiming to strengthen financial stability and improve regulatory oversight
- The updated norms will apply equally to bank-owned NBFCs, ensuring regulatory consistency across the sector
- The SBR framework classifies NBFCs into different layers — Base, Middle, Upper, and Top — based on their size, activity, and risk profile, with each layer subject to distinct regulatory requirements
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• RBI: revised Scale-Based Regulation (SBR) framework for NBFCs (June 25, 2026) • Purpose: strengthen financial stability; applies to bank-owned NBFCs too • SBR Layers: Base Layer → Middle Layer → Upper Layer → Top Layer (based on risk) • RBI: India's central bank; original SBR framework introduced in October 2021
