Economy News

Second List of Upper Layer NBFCs by RBI

August 19 , 2026 13 hrs 0 min 42 0

The Reserve Bank of India (RBI) released a list of 17 large (upper layer or UL) non-banking finance companies (NBFCs) for the year 2026-27.
The list includes Tata Sons, subjecting them to enhanced regulatory requirements for at least five years and mandatory listing within three years of identification.
Other companies that figure in the list are REC Ltd, Power Finance Corporation Ltd, Indian Railways Finance Corporation Ltd, Bajaj Finance, Shriram Finance, Tata Capital, LIC Housing Finance and Cholamandalam Investment & Finance, Muthoot Finance, Aditya Birla Capital, Housing & Urban Development Corporation, Mahindra Financial Services, L&T Finance, Bajaj Housing Finance, HDB Financial Services and Piramal Finance.
The central bank’s framework categorises NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL) and provides the criteria to identify the NBFCs in the Upper Layer.
As per the RBI’s framework of Scale Based Regulation, the UL will comprise those NBFCs that are specifically identified annually by it as warranting enhanced regulatory requirements as stringent as commercial banks.
The UL consists of NBFCs having asset size of ₹1,00,000 crore and above as per the latest audited balance sheet for the financial year.
In terms of the framework, once an NBFC is classified as NBFC-UL, it will be subject to enhanced regulatory requirements, at least for a period of five years from its classification in the layer, even in case it does not meet the criteria in the subsequent years.
Non-Banking Financial Companies are financial institutions registered under the Reserve Bank of India Act, 1934.
NBFC is a financial company that provides banking services like loans, credit, and investments.
It does not hold a full bank license.
They cannot accept demand deposits like banks or issue self-drawn cheques.
Deposits with NBFCs are not insured by government backing like bank deposits.
They are registered under the Companies Act and regulated by the Reserve Bank of India.