The Reserve Bank of India (RBI) has begun reviewing its scale-based regulation (SBR) framework for Non-Banking Financial Companies (NBFCs). This review aims to adapt regulations based on NBFCs' systemic importance and asset size, as they play an increasingly crucial role in credit delivery. The current SBR categorizes NBFCs into upper, middle, and base layers, with stricter rules for the upper layer, which holds a significant portion of total NBFC assets. NBFC credit has grown substantially, reflecting their expanding financial intermediation role.