SOURCE : NEW18 NEWS
Last Updated:January 16, 2025, 16:48 IST
On January 16, the Reserve Bank of India (RBI) released its list of non-banking finance companies (NBFCs) in the upper layer
NBFC (Representative image)
On January 16, the Reserve Bank of India (RBI) released its list of non-banking finance companies (NBFCs) in the upper layer under the scale-based regulation (SBR) for the financial year 2024-25, adding Tata Capital Ltd to the roster.
The updated list features 15 companies, including LIC Housing Finance, Bajaj Finance, Shriram Finance, and Tata Sons Pvt Ltd, among others.
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However, despite meeting the criteria for identification as an NBFC in the upper layer based on the scoring methodology, Piramal Enterprises Limited was excluded from the list due to ongoing business group reorganization, as stated by the RBI in a release.
The inclusion of Tata Sons Pvt Ltd in the NBFC-UL list is noted to be without prejudice to the outcome of its pending de-registration application, which is currently under review by the RBI.
The RBI had introduced the Scale-Based Regulation framework on October 22, 2021, which classifies NBFCs into four layers: base layer, middle layer, upper layer, and top layer. The framework establishes a methodology for identifying NBFCs in the upper layer based on asset size and scoring metrics.
Once classified as an NBFC-UL, a company is required to comply with enhanced regulatory requirements for at least five years, even if it does not meet the criteria in subsequent years.
