The draft amendment relates to changes to the identification of Upper Layer NBFCs (NBFC-UL) under the Scale-Based Regulation framework. It replaces the existing dual methodology, based on asset size and parametric scoring, with a single, transparent criterion of asset size, setting the threshold at Rs 1,00,000 crore. It also proposes inclusion of government owned NBFCs in the Upper Layer, aligning with the principle of ownership neutral regulation. Additionally, NBFC-UL entities may be allowed to use State Government guarantees as a credit risk transfer tool without any cap, subject to conditions. The feedback/ comments from stakeholders are invited.