- Reserve Bank of India to update upper layer NBFC list with few changes expected
- Companies with loan books over Rs 1 lakh crore will be in the upper layer category
- Government-backed NBFCs may be added due to their developmental roles
The Reserve Bank of India is all set to release its updated list of upper layer non-banking finance companies, with sources indicating that the classification is likely to remain largely unchanged, but some government-backed NBFCs might be added to the list following the regulator's latest norms.
The RBI has finalised rules for identifying upper-layer NBFCs, under which companies with a loan book exceeding Rs 1 lakh crore will fall under the upper-layer category. The regulator has also approved the inclusion of large government-backed NBFCs in the category, considering their developmental role and mandate.
Sources said Tata Sons is expected to continue as an upper layer NBFC, as the RBI is yet to take a final decision on the company's request for cancellation of its registration. Under RBI regulations, NBFCs classified in the upper layer category are required to list on stock exchanges within three years.
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Tata Sons had approached the central bank in March 2024 seeking de-registration as an upper layer NBFC-CIC to avoid mandatory listing requirements. Tata Sons was placed in the upper layer NBFC list in September 2022 and was expected to complete the listing process by September 2025.
The central bank has also revised certain exposure norms for infrastructure finance companies (IFCs) in the upper layer category. The large exposure framework limit for such NBFC-IFCs will be increased from 35% to 45% of their capital base.
RBI Governor Sanjay Malhotra had earlier indicated that the updated upper layer NBFC list would be announced soon. The current list includes 15 NBFCs.
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