RBI Likely To Keep Tata Sons In Upper Layer NBFC List
· Free Press Journal
The Reserve Bank of India (RBI) is preparing to release an updated list of upper-layer non-banking financial companies (NBFCs) in the near future.
According to sources cited by NDTV Profit, the revised list is expected to remain largely unchanged, though it may include a few additional government-backed NBFCs under the classification framework.
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At present, the central bank has not taken a final decision on Tata Sons’ request for de-registration from the upper-layer NBFC category. According to the report, Tata Sons is likely to continue to remain in the list, despite its application seeking removal from the classification. The final announcement is expected soon, as per regulatory updates.
Earlier regulatory norms issued by the RBI require NBFCs with a loan book exceeding ₹1 lakh crore to be classified under the upper layer category. The framework also allows large government-owned NBFCs to be included in this segment.
Noel Tata Writes To RBI To Argue Against Tata Sons ListingOnce an NBFC is placed in the upper layer list, it becomes subject to stricter regulatory oversight and is required to be listed on stock exchanges within three years.
Tata Sons had applied for cancellation of its NBFC-CIC registration in March 2024, reportedly to avoid the mandatory listing requirement.
However, the RBI had earlier included Tata Sons in the upper-layer NBFC category in September 2022, which triggered the expectation that the company would need to comply with listing rules by September 2025.
RBI Governor Sanjay Malhotra recently stated that the updated list of upper-layer NBFCs would be released “shortly,” signalling that the review process is nearing completion. Currently, the RBI’s upper-layer NBFC list includes 15 entities.
The classification exercise is part of the RBI’s broader effort to strengthen regulatory oversight of large financial institutions and ensure systemic stability.
In addition to Tata Sons, several large NBFCs continue to be monitored under this framework due to their scale, interconnectedness, and impact on the financial system.
The final list is expected to provide clarity on compliance timelines and listing obligations for affected entities, particularly Tata Sons, whose status remains a key point of regulatory and industry attention.