RBI releases list of NBFCs in upper layer under scale-based regulations
New Delhi, Sep 14, 2023
In terms of the framework, once an NBFC is classified as NBFC-UL, it shall be subject to enhanced regulatory requirement, at least for a period of five years
The Reserve Bank of India (RBI) on Thursday announced the list of non-banking financial corporations (NBFC)s in the upper layer under scale-based regulation for NBFCs for the year 2023-24.
The RBI had issued the scale based regulation (SBR) on October 22, 2021. The framework categorises NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL) and gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology. Accordingly, the 2023-24 list of NBFC-UL is as under:
Name of the NBFC
- LIC Housing Finance Limited
- Bajaj Finance Limited
- Shriram Finance Limited (formerly Shriram Transport Finance Company Limited)
- Tata Sons Private Limited
- L & T Finance Limited
- Piramal Capital & Housing Finance Limited
- Cholamandalam Investment and Finance Company Limited
- Indiabulls Housing Finance Limited
- Mahindra & Mahindra Financial Services Limited
- Tata Capital Financial Services Limited
- PNB Housing Finance Limited
- HDB Financial Services Limited
- Aditya Birla Finance Limited
- Muthoot Finance Limited
- Bajaj Housing Finance Ltd.
RBI further said on the website that despite qualifying for identification as NBFC-UL as per scoring methodology, TMF Business Services Limited (formerly Tata Motors Finance Limited) is not being included in the list of NBFC-UL in the current review due to its ongoing business reorganisation.
In terms of the framework, once an NBFC is classified as NBFC-UL, it shall be subject to enhanced regulatory requirement, at least for a period of five years from its classification in the layer, even in case it does not meet the parametric criteria in the subsequent year/s.
[The Business Standard]