New Delhi, April 17 -- Assets of Upper Layer non-banking financial companies (NBFCs) could rise to 70 per cent of the total assets of the sector from 30 per cent now if the Reserve Bank of India (RBI) implements the proposed draft amendments to its Scale-Based Regulation (SBR) framework, CareEdge Ratings has said.

The proposed changes in SBR framework introduces a single threshold of Rs 1 lakh crore in total assets for classifying NBFCs into the Upper Layer, replacing the current two-pronged methodology based on size and parametric scoring.

Inclusion of Government-Owned NBFCs

A key change is the adoption of an ownership-neutral approach, bringing government-owned NBFCs under the Upper Layer framework. Earlier, such entities were largel...