Q6 · UPPSC current affairs · 16 September 2026 · News · RBI NBFC Upper Layer Listing Rules

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What is the primary objective of introducing 'Scale-Based Regulation' for NBFCs by the Reserve Bank of India?

A To completely abolish private non-banking financial institutions
B To align supervisory intensity with the systemic risk profile of NBFCs
C To merge all upper-layer NBFCs into public sector banks
D To restrict NBFCs from operating outside urban metropolitan areas

Correct answer: (b) To align supervisory intensity with the systemic risk profile of NBFCs

Explanation

Option B is correct because Scale-Based Regulation is designed to align regulatory and supervisory intensity with the systemic risk profile of various NBFCs. The other options describe actions not supported by the RBI's regulatory framework.

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2019 · Q74 · UPPGS

    With reference to the incasures of Tenancy Reform in India, which of the statements is/are correct? 1. Regulation of rent 2. Security of tenure 3. Confirment of ownership on tenants Select the correct answer using codes given below:

    View answer →

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