The RBI has proposed to classify non-banking finance companies (NBFCs) into four categories to prevent a collapse in one of them from affecting the financial system. All NBFCs with assets of up to Rs 1,000 crore – numbering about 9,200 and are non-deposit-taking and non-systemically-important – will fall under the NBFC-Base Layer category. The NBFC-Middle Layer will consist of those companies classified as systemically-important and deposit-taking. The NBFC-Upper Layer will include as many as 30 systemically-significant companies, which will be regulated like banks and will have to implement differential standard asset provisioning norms. The NBFC-Top Layer is currently empty. However, the RBI can move an NBFC to this category, if it feels that there is an unsustainable increase in the systemic risk spill-over from specific NBFCs in the upper layer.