For a NBFC to become systemically important NBFC what must be its asset size ........

General Awareness (SEBI) Financial Awareness

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For a NBFC to become systemically important NBFC, what must be its asset size?

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SEBI Grade A (Ph 1 Paper 1 2021)

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Rs.. 5000 crore

Rs.500 crore

Rs.250 crore

Rs.2500 crore

Rs/1000 crore

Explanation:

- For an NBFC (Non-Banking Financial Company) to be classified as a "systemically important NBFC," its asset size must be Rs. 500 crore or above (earlier), but as per the latest RBI notification (2021 onwards), this threshold has been increased to Rs. 1,000 crore.

- The earlier limit (pre-2021) was Rs. 500 crore (Option 2), but now NBFCs with assets of Rs. 1,000 crore and above are considered systemically important (Option 5).

- Rs. 5,000 crore, Rs. 2,500 crore, and Rs. 250 crore options are not standard thresholds per RBI norms.

- This classification is important because "systemically important NBFCs" face tighter regulations and supervision from RBI.

Correct Answer: Option 5 – Rs. 1,000 crore.