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RBI proposes scale-based regulations for shadow banks
To ensure stricter governance of large scale NBFCs after shocking cases of IL&FS and DHFL, RBI has proposed a four layer pyramid system for better classification. NBFCs at Top level in this propose system will have to take stringent measures to ensure risk management. Assets Provisions norms, Entry norms for new NBFCs, Identification of bad assets etc, are other important topics of this proposal.
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