UPSC Prelims Practice Questions — Closely monitor asset quality, RBI tells NBFCs

Question 1

Within the Reserve Bank of India's Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies, which one of the following layers accounts for the largest share of NBFCs by number?

Accepted Answer

Base Layer (NBFC-BL)

Answer

Middle Layer (NBFC-ML)

Answer

Upper Layer (NBFC-UL)

Answer

Top Layer (NBFC-TL)

Question 2

Which one of the following is the regulatory authority responsible for the supervision of Housing Finance Companies (HFCs) and the implementation of the Scale-Based Regulation framework that was the focus of the January 2026 NBFC sector meeting?

Accepted Answer

Reserve Bank of India

Answer

National Housing Bank

Answer

Securities and Exchange Board of India

Answer

Insurance Regulatory and Development Authority of India

Question 3

How many regulatory layers are there under the Reserve Bank of India's Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies?

Accepted Answer

Four

Answer

Two

Answer

Three

Answer

Five

Question 4

With reference to the Reserve Bank of India's Scale-Based Regulation framework for NBFCs, consider the following:
1. Base Layer (NBFC-BL)
2. Middle Layer (NBFC-ML)
3. Upper Layer (NBFC-UL)
4. Top Layer (NBFC-TL)
Which of the above is/are correctly identified as layers under the framework?

Accepted Answer

1, 2, 3 and 4

Answer

1 and 3 only

Answer

1, 2 and 3 only

Answer

2, 3 and 4 only

UPSC Prelims Practice Questions — Closely monitor asset quality, RBI tells NBFCs

Q1. Within the Reserve Bank of India's Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies, which one of the following layers accounts for the largest share of NBFCs by number?

Q2. Which one of the following is the regulatory authority responsible for the supervision of Housing Finance Companies (HFCs) and the implementation of the Scale-Based Regulation framework that was the focus of the January 2026 NBFC sector meeting?

Q3. How many regulatory layers are there under the Reserve Bank of India's Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies?

Q4. With reference to the Reserve Bank of India's Scale-Based Regulation framework for NBFCs, consider the following: 1. Base Layer (NBFC-BL) 2. Middle Layer (NBFC-ML) 3. Upper Layer (NBFC-UL) 4. Top Layer (NBFC-TL) Which of the above is/are correctly identified as layers under the framework?