The regulatory framework for non-banking finance companies (NBFCs) will have to follow stringent rules laid by the Reserve Bank of India. The NBFCs now will have to identify and make provisions for bad loans considering 90-days overdue norms. The RBI is of the view that the risk factor involved in NBFCs functioning using their own funds and the ones using Public funds cannot be subjected to the same set of regulations. The Central Bank will apply prudential regulations to NBFCs where the public funds are involved.