RBI has issued new Regulaotry Framework for NBFCs : Scale Based Regulations. These were notifeid on October 22, 2021 and shall be effective from October 01, 2022. The importanet points of these regulations are:

1. Regulations and compliances shall be based on the Scale or size of the NBFCs. The NBFCs are segregated in 3 categories Base Layer, Midddle Layer and Upper Layer. 

2. Categorization is based on the aset size and also the specific activities. NBFCs with less than 100 Crore of asset size are kept in Base Layer. Thus almost all of the NBFCs are in this Base Layer. Top Layer ideally will be empty.

3. Regulatory minimum NOF increase from Rs. 2 Crore to Rs. 10 Crores. Time till March 31,2025 to achieve Rs. 5 Crore and till Marc 31, 2027 to achieve Rs. 10 Crore.

4. At least one director to have relevant experience of working in NBFC/Bank. Relevant experience yet not defined. Whether the exiting directors of the NBFCs shall be considered having relevant experience is unclear.

5. ICAAP (Internal Capital Adeqacy Assessemnt Process): for Midddle Layer and Upper Layer.

6. All NBFCs to Cosntitute Risk Management Committee (RMC) either Board or Executive Level.

7. Board Policy for Loan to Directors, their relatives and senior officers of the NBFC.