Current Affairs · Banking Regulations
Under the Scale Based Regulation (SBR) framework by the RBI, which statement accurately describes the regulatory requirements regarding capital adequacy, listing obligations, and disclosures for Non-Banking Financial Companies identified in the Upper Layer (NBFC-UL)?
- 1NBFC-UL entities are exempted from Common Equity Tier 1 requirements if they are bank subsidiaries but must maintain a total CRAR of 15%.
- 2NBFC-UL entities are required to maintain a Common Equity Tier 1 capital of at least 9% of Risk Weighted Assets, must list their equity shares within 3 years of identification, and are subject to disclosure requirements akin to listed companies even prior to listing.✓
- 3NBFC-UL entities must maintain a Common Equity Tier 1 capital of 8% and are mandated to list their shares within 2 years of being placed in the upper layer.
- 4NBFC-UL entities must maintain a minimum Common Equity Tier 1 capital of 9% of Risk Weighted Assets and list equity shares within 3 years from classification, with mandatory 33% independent directors.
Correct answer
NBFC-UL entities are required to maintain a Common Equity Tier 1 capital of at least 9% of Risk Weighted Assets, must list their equity shares within 3 years of identification, and are subject to disclosure requirements akin to listed companies even prior to listing.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for Current Affairs?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Banking Regulations?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Current Affairs · Banking Regulations