New Delhi, Sept. 29 -- Rising scrutiny by the Reserve Bank of India (RBI) is prompting some promoter groups to reassess the structure of their holding companies and non-banking financial companies (NBFCs), with compliance requirements and regulatory restrictions emerging as key considerations.

RBI has issued notices to some entities seeking clarification on their registration status and compliance with NBFC norms. Some groups are subsequently reviewing their balance sheets and business structures to determine whether they fall within the regulator's definitions.

NBFC Classification Hinges On 50 percent Test

An entity is generally classified as an NBFC if its financial assets account for more than 50 per cent of total assets, excluding ...