Economics · Banking in India
Under the RBI regulatory framework, a Non-Banking Financial Company (NBFC) is classified as 'systemically important' primarily based on which criterion?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Its asset size exceeds a specific threshold (e.g., ₹500 crore or more), making its stability crucial for the financial system✓
- 2It operates exclusively within the Small and Medium Enterprises (SMEs) sector
- 3It operates only in aspirational rural districts
- 4It receives 100% of its equity capital directly from public sector undertakings
Correct answer
Its asset size exceeds a specific threshold (e.g., ₹500 crore or more), making its stability crucial for the financial system
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