The Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 (updated as on May 05, 2025) introduces a scale-based regulatory framework categorizing NBFCs into four layers based on their size, activity, and risk profile. This approach aims to enhance prudential regulation, ensure financial system stability, and protect the interests of investors and depositors by tailoring oversight to the specific characteristics of each NBFC category.


FREE CONSULTATION