RBI notifies scale based regulatory framework for NBFCs

In the past few decades, non-banking financial companies (NBFCs) have played a very critical role in the growth of the Indian financial services landscape. The NBFC eco-system has efficiently supported the formal banking system by providing access to credit and other financial services to various sections of the Indian industry. Over the years, the Reserve Bank of India (RBI) has also closely regulated the operations of NBFCs, and has been rationalizing the applicability of stricter regulations based on their asset size.