India, June 25 -- The Reserve Bank of India (RBI) has issued final amendment directions revising the framework for identifying Upper Layer Non-Banking Financial Companies (NBFC-UL) and bringing eligible government-owned NBFCs within its enhanced regulatory ambit.
Under the revised framework, NBFCs with an asset size of ?1 lakh crore or more will now be classified as Upper Layer entities, replacing the earlier methodology with a simpler and more transparent asset-based criterion. Eligible government-owned NBFCs will also be included under the revised framework.
The RBI has further allowed all NBFC-ULs to use State Government guarantees as a credit risk transfer instrument without any cap, subject to specified conditions. Additionally, exem...