16 NBFCs identified as Upper Layer entities for bank-like compliances
– Anita Baid, Vice-President, VKCPL | finserv@vinodkothari.com
In line with the guidance given in the Scale Based Regulatory Framework of the RBI[1], the new regulatory framework is effective from October 1, 2022. Just one day before D-day, the RBI on September 30, has kickstarted the new regulatory version for NBFCs by identifying 16 of the 9472 odd NBFCs[2], as NBFCs constituting the Upper Layer. These entities have been asked to migrate to a bank-like regulatory system. The first step upon this identification would be to put in place a Board approved policy for the adoption of the enhanced regulatory framework applicable to NBFC-UL. Further, these entities will prepare a glide path of compliance within three months, i.e. by December 30, 2022 and the glide path itself will have two years of adherence time, i.e. by September 30, 2024.
| Our resources on the SBR Framework can be read here- https://vinodkothari.com/sbr/ In-house Training on SBR Framework for NBFC-ML/UL – https://vinodkothari.com/2022/09/in-house-training-on-sbr-framework-for-nbfc-ml-ul/ |