This article covers the key compliance aspects for NBFCs, how to implement DPDP 2023, the role of Vulnerability Assessment and Penetration Testing (VAPT), AI-driven security solutions, customer privacy awareness, and comparisons with global data protection laws.

The Scale-Based Regulation (SBR) framework, introduced by the RBI, categorizes NBFCs into four layers based on their size, activity, and risk perception:

NBFCs are financial institutions that provide banking-like services such as loans, credit facilities, and investments but do not accept demand deposits. They are registered under the Companies Act, 1956/2013 and regulated primarily by the RBI