CAIIB · ABM · Chapter 31

Compliance Function and Role of Chief Compliance Officer in NBFCs

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

Base Layer — Short Name / Who Sits Here?

A

Short Name: NBFC-BL; Who Sits Here: Non-deposit-taking NBFCs with assets < ₹1,000 crore; NBFC-P2P, NBFC-AA, NOFHC; NBFCs not availing public funds and with no customer interface.

Q

Middle Layer — Short Name / Who Sits Here?

A

Short Name: NBFC-ML; Who Sits Here: All deposit-taking NBFCs (NBFC-Ds) regardless of size; non-deposit NBFCs ≥ ₹1,000 crore; SPDs, IDF-NBFCs, CICs, HFCs, NBFC-IFCs.

Q

Upper Layer — Short Name / Who Sits Here?

A

Short Name: NBFC-UL; Who Sits Here: NBFCs warranting enhanced regulation based on a parametric scoring methodology. Top 10 eligible NBFCs by asset size always sit here.

Q

Top Layer — Short Name / Who Sits Here?

A

Short Name: NBFC-TL; Who Sits Here: Reserved for situations of substantial systemic risk from specific NBFC-ULs. Ideally remains empty.

Q

NBFC-P2P, NBFC-AA, NOFHC, NBFCs without public funds & customer interface?

A

Always Base Layer

Q

NBFC-D, CIC, IFC, HFC?

A

Middle Layer or Upper Layer (never Base Layer)

Q

SPD (Standalone Primary Dealer), IDF-NBFC?

A

Always Middle Layer

Q

NBFC-ICC, NBFC-MFI, NBFC-Factor, NBFC-MGC?

A

Any layer depending on SBR scoring

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