RBI to adopt scale-based regulatory framework for NBFCs, set audit norms

Banking regulator to also prescribe dividend distribution norms

In an attempt to enhance the oversight of regulated entities, the Reserve Bank of India (RBI) will use scale-based approach factors in systemic risk contribution while regulating non-banking financial companies (NBFCs). The regulator will also prescribe norms for dividend distribution by NBFCs. 
 
Also, as a step towards strengthening the audit systems, the financial sector regulator will issue norms for large urban co-operative banks (UCBs) and NBFCs to adopt a risk-based internal audit (RBIA).
 
In regulatory measures announced along with the monetary policy review, the RBI said it would harmonise the guidelines for appointing statutory auditors for commercial banks,