RBI releases list of upper layer NBFCs for 2024-2025, includes Tata Capital

Reserve Bank of India

The Reserve Bank of India (RBI) on January 16 announced the list of non-banking finance companies (NBFCs) in the upper layer under scale based regulation for NBFCs for the year 2024-25, and added Tata Capital Ltd to the list.

The list has 15 companies that include LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons Pvt Ltd among others.

Despite qualifying for identification as NBFC-UL as per scoring methodology, Piramal Enterprises Limited is not being included in the list of NBFC-UL in the current review due to ongoing reorganisation in the business group., RBI said in a release.

Further, inclusion of Tata Sons Private Limited in the list of NBFC-UL is without prejudice to the outcome of its application for de-registration, which is under examination, RBI added.

The RBI had issued the Scale Based Regulation (SBR) on October 22, 2021. The framework categorises NBFCs in base layer, middle layer, upper layer and top layer.

Also, the regulation gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology.

Once an NBFC is classified as NBFC-UL, it will be subject to enhanced regulatory requirement at least for a period of five years from its classification in the layer even in case it does not meet the parametric criteria in the subsequent years.