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The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent recurrence of any systemic risk to the country’s financial system.
The banking regulator on Friday released a discussion paper on the revised regulatory framework which is formulated on a scale-based approach, and sought comments within a month. The regulatory and supervisory framework of NBFCs will be based on a [X] layered structure.
If the framework is visualised as a pyramid, the bottom of the pyramid, where least regulatory intervention is warranted, can consist of NBFCs currently classified as non-systemically important NBFCs (NBFC-ND), NBFCP2P lending platforms, NBFCAA, NOFHC and Type I NBFCs.
Q. Which of the following NBFC is regulated by RBI?
  • a)
    Asset Finance company
  • b)
    Insurance companies
  • c)
    Mutual funds
  • d)
    Housing finance company
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The Reserve Bank of India (RBI) has suggested a tougher regulatory fr...
Asset Finance company is financing for physical assets such as tractors , automobiles etc regulated by RBI
  • Insurance companies regulated by IRDAI
  • Mutual funds regulated by SEBI
  • Housing finance company regulated by NHB
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The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent recurrence of any systemic risk to the country’s financial system.The banking regulator on Friday released a discussion paper on the revised regulatory framework which is formulated on a scale-based approach, and sought comments within a month. The regulatory and supervisory framework of NBFCs will be based on a [X] layered structure.If the framework is visualised as a pyramid, the bottom of the pyramid, where least regulatory intervention is warranted, can consist of NBFCs currently classified as non-systemically important NBFCs (NBFC-ND), NBFCP2P lending platforms, NBFCAA, NOFHC and Type I NBFCs.Q. Which of the following NBFC is regulated by RBI?a)Asset Finance companyb)Insurance companiesc)Mutual fundsd)Housing finance companyCorrect answer is option 'A'. Can you explain this answer?
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The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent recurrence of any systemic risk to the country’s financial system.The banking regulator on Friday released a discussion paper on the revised regulatory framework which is formulated on a scale-based approach, and sought comments within a month. The regulatory and supervisory framework of NBFCs will be based on a [X] layered structure.If the framework is visualised as a pyramid, the bottom of the pyramid, where least regulatory intervention is warranted, can consist of NBFCs currently classified as non-systemically important NBFCs (NBFC-ND), NBFCP2P lending platforms, NBFCAA, NOFHC and Type I NBFCs.Q. Which of the following NBFC is regulated by RBI?a)Asset Finance companyb)Insurance companiesc)Mutual fundsd)Housing finance companyCorrect answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent recurrence of any systemic risk to the country’s financial system.The banking regulator on Friday released a discussion paper on the revised regulatory framework which is formulated on a scale-based approach, and sought comments within a month. The regulatory and supervisory framework of NBFCs will be based on a [X] layered structure.If the framework is visualised as a pyramid, the bottom of the pyramid, where least regulatory intervention is warranted, can consist of NBFCs currently classified as non-systemically important NBFCs (NBFC-ND), NBFCP2P lending platforms, NBFCAA, NOFHC and Type I NBFCs.Q. Which of the following NBFC is regulated by RBI?a)Asset Finance companyb)Insurance companiesc)Mutual fundsd)Housing finance companyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent recurrence of any systemic risk to the country’s financial system.The banking regulator on Friday released a discussion paper on the revised regulatory framework which is formulated on a scale-based approach, and sought comments within a month. The regulatory and supervisory framework of NBFCs will be based on a [X] layered structure.If the framework is visualised as a pyramid, the bottom of the pyramid, where least regulatory intervention is warranted, can consist of NBFCs currently classified as non-systemically important NBFCs (NBFC-ND), NBFCP2P lending platforms, NBFCAA, NOFHC and Type I NBFCs.Q. Which of the following NBFC is regulated by RBI?a)Asset Finance companyb)Insurance companiesc)Mutual fundsd)Housing finance companyCorrect answer is option 'A'. Can you explain this answer?.
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