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The Reserve Bank of India (RBI) has officially disclosed the list of Non-Banking Financial Companies (NBFCs) falling within the Upper Layer (NBFC-UL) as part of the Scale Based Regulation for NBFCs framework for the fiscal year 2023-24.
This announcement follows the RBI’s introduction of the Scale Based Regulation (SBR) framework on October 22, 2021, which categorises NBFCs into different layers, including the Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL). The framework outlines the methodology for classifying NBFCs into the Upper Layer based on their asset size and scoring methodology.
The list of NBFCs included in the Upper Layer for the year 2023-24 is as follows:
- LIC Housing Finance Limited: Deposit taking Housing Finance Company
- Bajaj Finance Limited: Deposit taking NBFC-Infrastructure Credit Company
- Shriram Finance Limited (formerly Shriram Transport Finance Company Limited): Deposit taking NBFC-Infrastructure Credit Company
- Tata Sons Private Limited: Core Investment Company (CIC)
- L & T Finance Limited: Non-deposit taking NBFC-Infrastructure Credit Company
- Piramal Capital & Housing Finance Limited: Non-deposit taking Housing Finance Company
- Cholamandalam Investment and Finance Company Limited: Non-deposit taking NBFC-Infrastructure Credit Company
- Indiabulls Housing Finance Limited: Non-deposit taking Housing Finance Company
- Mahindra & Mahindra Financial Services Limited: Deposit taking NBFC-Infrastructure Credit Company
- Tata Capital Financial Services Limited: Non-deposit taking NBFC-Infrastructure Credit Company
- PNB Housing Finance Limited: Deposit taking Housing Finance Company
- HDB Financial Services Limited: Non-deposit taking NBFC-Infrastructure Credit Company
- Aditya Birla Finance Limited: Non-deposit taking NBFC-Infrastructure Credit Company
- Muthoot Finance Limited: Non-deposit taking NBFC-Infrastructure Credit Company
- Bajaj Housing Finance Ltd.: Non-deposit taking Housing Finance Company
As per the framework’s guidelines, once an NBFC qualifies for the NBFC-UL category, it will be subject to enhanced regulatory requirements for a minimum of five years from the date of classification, even if it does not meet the parametric criteria in subsequent years.
This move by the RBI aims to strengthen the regulatory oversight of NBFCs and ensure the stability and integrity of the financial sector in India.
