RBI proposes asset-based norms for upper-layer NBFCs

The central bank has also proposed to allow state-owned NBFCs to join the club

- Staff Writer

Tata Sons is the only company left on the upper layer list to remain private.

(MINT)

India’s central bank on Friday proposed changes to its scale-based regulations for non-banking financial companies simplifying criteria for upper layer non-banks and allowing state-owned NBFCs to join the club.

NBFCs with assets of ₹1 trillion or more are proposed to be included in the list replacing an earlier methodology of quantitative and qualitative parameters. Upper layer non-banks face tighter regulations than smaller ones.

A list of all NBFCs for fiscal 2026 released by the Reserve Bank of India on Friday included the name of Tata Sons among others in the upper layer. Yet, it leaves it unclear whether the holding company of the Tata Group of companies is an NBFC or not.

This becomes important because rules mandate all upper layer non-banks should list on the equity markets.