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 Rs 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 Rs 1,00,000 crore and above,” the draft put 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, gets a reprieve.
As per the RBI mandate, the top-15 entities in the upper layer have to list, and only Tata Sons had not gone for listing even after the October 2025 deadline despite featuring in the list.
The draft norms also pitched for inclusion of the government-run entities in the list of upper layer NBFCs.
“The scale-based regulation framework currently places government-owned NBFCs in the base layer or middle layer and not in the UL. In pursuance of the principle of ownership neutral regulatory regime for NBFCs, it is now proposed to consider eligible government-owned NBFCs also for inclusion in the list of NBFC-UL based on the revised criteria,” it said. Tata Sons had an asset base of Rs 1.75 lakh crore as of March 2025. A slew of state-run enterprises, which are large enough in size were excluded in the UL list.
The draft also proposes to allow all NBFC-UL to use state government guarantees as credit risk transfer instrument without any limit, subject to the specified conditions.
Governor Sanjay Malhotra had on Wednesday announced that the Reserve Bank will be coming up with a revised framework on NBFCs, when asked about the update on Tata Sons’ compliance with the earlier directions.