RBI introduces Scale Based Regulation (SBR) for NBFCs

The Reserve Bank of India has put in place a revised regulatory framework for NBFCs which is a Scale Based Regulation (SBR). These guidelines shall be effective from October 01, 2022.
Now for regulation of NBFCs under the new Scale Based Regulation (SBR), RBI has categorized NBFCs into four layers (or 4 scales) based on their size, activity, and perceived riskiness. These are: NBFC – Base Layer (NBFC-BL), NBFC – Middle Layer (NBFC-ML), NBFC – Upper Layer (NBFC-UL) and NBFC – Top Layer (NBFC-TL).
The Top Layer will ideally remain empty. This layer can get populated if the Reserve Bank is of the opinion that there is a substantial increase in the potential systemic risk from specific NBFCs in the Upper Layer.
Minimum Net Owned Fund Requirement: Regulatory minimum Net Owned Fund (NOF) for NBFC-ICC, NBFC-MFI and NBFC-Factors will be increased to Rs. 10 crore (from Rs 2 crore at present).
For NBFC-P2P, NBFC-AA, and NBFCs with no public funds and no customer interface, the NOF shall continue to be Rs. 2 crore.
Ceiling on IPO Funding: There will be a ceiling of Rs. 1 crore per borrower for financing subscription to Initial Public Offer (IPO) of NBFCs. This IPO ceiling will come into effect from April 01, 2022.

Points to remember:

What is the name of the new type of regulation introduced by RBI for NBFCs to come into effect from October 01, 2022?- Scale Based Regulation (SBR)
Under the Scale Based Regulation (SBR) of NBFCs, RBI has categorized NBFC into how many categories?- 4
Which category will ideally remain empty in the Scale Based Regulation (SBR) of NBFCs?
What is the ceiling limit set by RBI w.e.f April 01, 2022 per borrower for financing subscription to Initial Public Offer (IPO) of NBFCs?- Rs 1 crore

Source: RBI