“The Upper Layer shall comprise of those NBFCs which are specifically identified by the Reserve Bank as warranting enhanced regulatory requirement based on a set of parameters and scoring methodology .The top ten eligible NBFCs in terms of their asset size shall always reside in the upper layer , irrespective of any other factor,” read an earlier Central Bank readout.
Earlier in April, the regulator capped aggregrate exposure of NBFCs which are in the upper layer toward one entity at 20% of capital base. The limit can only be extended by another 5% with board’s approval. For a particular borrower group, the cap is at 25%, with additional 10% if exposure is towards infrastructure.
NBFCs classified as NBFC-UL shall maintain provisions in respect of ‘standard’ assets at the following rates for the funded amount outstanding: