The Reserve Bank of India has scrapped its earlier multi-parameter scoring system for identifying upper layer NBFCs. It is continuing the existing methodology for identification of NBFCs in Upper Layer (NBFC-UL) with a transparent, simple and absolute criteria, that is asset size of Rs 1,00,000 crore and above. This will apply to both private and government-owned entities, with the threshold reviewed every three years. The central bank has also increased the large exposure limit for upper layer infrastructure finance companies from 35% to 45% of their eligible capital base.

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