RBI proposes to include PSUs in upper-layer NBFCs

PTI

mumbai

The RBI on Friday proposed changes in the criteria for identifying upper-layer non-banking finance companies (NBFC), pitching for an asset-size-based approach as against the earlier parametric system and the inclusion of state-run entities. As per the draft 'Reserve Bank of India (Non-Banking Financial Companies' Registration, Exemptions and Framework for Scale Based Regulation) Second Amendment Directions, 2026', upper-layer NBFCs will be those having assets of over ₹1 lakh crore. 

"With a view to adopt a transparent, simple and absolute criteria for identification of NBFC-UL, it is proposed to replace the existing methodology with asset size criteria, which is currently proposed as ₹1,00,000 crore and above," the draft on the RBI website said.

The draft comes at a time when the listing of Tata Sons, the holding company of the salt-to-software conglomerate, is under intense conversation and all eyes are focused on whether the entity, a core investment company (CIC), gets a reprieve. As per the RBI mandate, the top 15 entities in the upper layer have to list. Only Tata Sons has not gone for listing even after the October 2025 deadline despite featuring in the list.