Mumbai, Jan. 22 -- The Reserve Bank of India on Friday proposed a four- tier regulatory framework for non-banking finance companies based on systemic importance and potential risk to financial system stability . With this while the RBI has sought to bring the NBFC sector on par with banks, it has also assured that the propsoed changes in regulation notwistandting, NBFCs engaged in niche sectors and georaphies will continue to have flexbility in terms of business operations and uniqueness going forward.

In its discussion paper released on Friday, RBI said that the 4 layers will include NBFC-Base Layer (NBFC-BL), NBFC -Middle Layer (NBFC ML), NBFC - Upper Layer (NBFC UL) and NBFC - Top Layer (NBFC TL).

All NBFCs with asset size of Rs.1,00...