- The Master Directions were issued as part of a revised regulatory framework for NBFCs known as the Scale Based Regulation (SBR).
- The SBR framework, which was introduced on October 22, 2021, categorizes NBFCs into four layers based on their asset size and scoring methodology: Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL).
- The RBI has also announced the list of NBFCs in the Upper Layer under Scale Based Regulation for NBFCs for the year 2023-24.
- Once an NBFC is classified as NBFC-UL, it will be subject to enhanced regulatory requirements for at least five years from its classification in the layer, even if it does not meet the parametric criteria in subsequent years.
Question:
Q.1 When were the Master Directions issued by the RBI?a. 19 October 2022
b. 19 October 2023
c. 22 October 2021
d. 22 October 2022
