RBI released the list of Upper Layer NBFCs for 2026-27

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RBI Upper Layer NBFCs List 2026-27

Highlights

RBI released the list of Upper Layer NBFCs for 2026-27, which includes 17 entities such as REC Limited, Bajaj Finance Limited, and Tata Sons Private Limited.
The inclusion of Tata Sons Private Limited in the list is without prejudice to the final outcome of its de-registration application, which is still pending.
NBFCs classified as Upper Layer are subject to stringent regulatory standards for at least five years, strengthening sectoral oversight and financial stability.

This article was translated from the original. Read the original version by our correspondent here.

New List under Revised Criteria

As stated in the Reserve Bank of India press release, the central bank has published the list of NBFCs classified as Upper Layer for 2026-27 under the Scale Based Regulation framework. This framework is outlined in the Reserve Bank of India (Non-Banking Financial Companies, Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025, and classifies NBFCs into Base Layer, Middle Layer, Upper Layer, and Top Layer.

The released list includes 17 entities, such as REC Limited, Power Finance Corporation Limited, Indian Railway Finance Corporation Limited, Bajaj Finance Limited, Shriram Finance Limited, LIC Housing Finance Limited, Cholamandalam Investment and Finance Company Limited, Tata Capital Limited, Tata Sons Private Limited, Muthoot Finance Limited, Aditya Birla Capital Limited, Housing and Urban Development Corporation Limited, Mahindra & Mahindra Financial Services Limited, L&T Finance Limited, Bajaj Housing Finance Limited, HDB Financial Services Limited, and Piramal Finance Limited.

RBI has also clarified that the inclusion of Tata Sons Private Limited in the list is without prejudice to the outcome of its de-registration application, which is currently under review.

Stringent Compliance and Sectoral Impact

Once an NBFC is classified as Upper Layer under the framework, enhanced regulatory requirements apply for at least five years, even if it fails to meet the criteria in subsequent years. For this reason, PNB Housing Finance Limited and Sammaan Capital Limited, which do not meet the criteria in the current review, will still remain in the Upper Layer as they were identified in this category in the 2024-25 list.

This move further targets supervision in India's NBFC sector based on size, complexity, and systemic importance. Entities in the Upper Layer are likely to face stricter standards related to capital, governance, and risk management, thereby strengthening RBI's focus on financial stability.

In our previous report, ICRA's assessments and the Business Activity Monitor discussed the sharp expansion in economic activity in June 2026 and the GDP growth estimate of 6.4%–6.6% for the first quarter of FY2027. That article also noted that high energy/commodity prices and limited input availability in some sectors could put pressure on costs and margins, posing a risk to the pace of growth in the near term.

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