The Reserve Bank of India has focused on 15 non-banking finance companies including LIC Housing Finance, Bajaj Finance, Shriram Finance, Tata Sons and Cholamandalam Investment and Finance Company.
Banking & Finance
These NBFCs, which belong to various categories — deposit-taking housing finance companies (HFC), non-deposit-taking HFC, deposit-taking NBFC-ICC (Investment and Credit Company), Non-deposit-taking NBFC-ICC, and core investment companies — will be subject to enhanced regulatory requirements, at least for a period of five years from their classification in the layer, even in case they do not meet the parametric criteria in the subsequent year/s, as per a RBI statement.With many entities growing and becoming systemically significant, the RBI said there is a need to align the regulatory framework for NBFCs, keeping in view their changing risk profiles. Hence, SBR has been brought in. It encompasses different facets of regulation of NBFCs covering capital requirements, governance standards, prudential regulation, etc.
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