RBI identifies NBFCs under Upper Layer framework

Mumbai: The Reserve Bank of India (RBI) on Thursday released the list of Non-Banking Financial Companies (NBFCs) classified under the Upper Layer (NBFC-UL) of its Scale-Based Regulation (SBR) framework for 2026-27, based on their financial position as of March 31, 2026.

Tata Sons remains the only Core Investment Company (CIC) included in the NBFC-UL list. However, the RBI clarified that its inclusion is without prejudice to the outcome of Tata Sons’ application for deregistration, which is currently under examination.

The SBR framework classifies NBFCs into four layers, including Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL), with progressively tighter regulatory requirements based on size, activity and risk profile.

The RBI said it reviewed the criteria for identifying NBFCs in the Upper Layer during 2025-26. Consequently, the NBFC-UL list for 2025-26 was not issued. The latest list for 2026-27 has been prepared using the revised eligibility criteria.

Under the framework, once an NBFC is classified as an Upper Layer entity, it remains subject to enhanced regulatory requirements for a minimum of five years, even if it does not meet the eligibility criteria in subsequent years.

Accordingly, NBFCs identified as Upper Layer entities in earlier exercises but falling short of the revised criteria in the current review will continue to remain under the NBFC-UL category and comply with the enhanced regulatory framework.