The Development Financial Institutions (DFIs), which are also regulated by the RBI, are required to comply with a leverage ratio defined in terms of the multiples of their net owned funds. The non-deposit taking systemically important nonbanking financial companies, even though they do not accept public deposits, are also subject to a capital adequacy regime.
This was done since these companies were found to be raising public funds from banks and capital market to grow their balance sheets. Investment in non-government securities 20. Prudential management of investment in non-Government securities (non-SLR securities) by the banks has been another area of regulatory focus primarily with a view to enhancing transparency of their investment portfolio.