The Reserve Bank of India has announced the list of NBFCs in the Upper Layer under Scale Based Regulation for NBFCs for the year 2024-25. The Reserve Bank had issued the Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs (the framework) on 22 October 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 2024-25 list of NBFC-UL is as under:
1 LIC Housing Finance - Deposit taking HFC
2 Bajaj Finance - Deposit taking NBFC-ICC
3 Shriram Finance - Deposit taking NBFC-ICC
4 Tata Sons Private - Core Investment Company
5 Cholamandalam Investment and Finance Company - Non-deposit taking NBFC-ICC
6 L&T Finance (Formerly known as L&T Finance Holdings) - Non-deposit taking NBFC-ICC
7 Mahindra & Mahindra Financial Services - Deposit taking NBFC-ICC
8 Aditya Birla Finance - Non-deposit taking NBFC-ICC
9 Tata Capital - Non-deposit taking NBFC-ICC
10 Piramal Capital & Housing Finance - Non-deposit taking HFC
11 PNB Housing Finance - Deposit taking HFC
12 HDB Financial Services - Non-deposit taking NBFC-ICC
13 Sammaan Capital (Formerly known as Indiabulls Housing Finance) - Non-deposit taking NBFC-ICC
14 Muthoot Finance - Non-deposit taking NBFC-ICC
15 Bajaj Housing Finance - Non-deposit taking HFC
Despite qualifying for identification as NBFC-UL as per scoring methodology, Piramal Enterprises is not being included in the list of NBFC-UL in the current review due to ongoing reorganisation in the business group. Further, inclusion of Tata Sons in the list of NBFC-UL is without prejudice to the outcome of its application for de-registration, which is under examination.
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.