New Delhi, April 9 -- The Reserve Bank of India (RBI) is set to introduce a new framework to classify non-banking financial companies (NBFCs) into three categories-upper, middle, and lower layers, Governor Sanjay Malhotra said following the latest monetary policy announcement.

He indicated that the framework will be rolled out soon, although the central bank is yet to decide whether it will first issue draft guidelines for public consultation.

Existing Framework Under Review

Currently, NBFCs are regulated under the Scale-Based Regulation (SBR) framework introduced in October 2021. This system classifies NBFCs into four layers-base, middle, upper, and top-based on their size, systemic importance, and risk profile.

The RBI periodically ...