RBI Master Direction NBFC Scale Based Regulation, 2023

Direction 2023 superseded

Effective: 19 Oct 2023

Plain-English summary

The RBI Master Direction on NBFC Scale-Based Regulation, first introduced in 2023 to end the now-defunct systemically important assets category system, has officially been superseded by a number of dedicated 2025 Master Directions relating to structure, capital, and registration. Even with the legislative amendment, the fundamental four-level regulatory structure classifying NBFCs based on Base, Middle, Upper, and Top categories as per size and level of systemic risk continues to be in force. The system legally imposes strict bank-style regulation on large financial institutions while also spurring industry-wide transformation in areas such as 90-day NPA classification and higher Net Owned Fund requirement.

Who it applies to

NBFC / Non-bank Lending

Topics

Prudential & Capital

Official source

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