Which NBFCs are classified in the upper layer? Here what RBI's final norms say
Any NBFC, which has an asset size of over Rs 1 lakh crore, will be considered as an upper layer NBFC now.
- Jun 24, 2026,
- Updated Jun 24, 2026 7:55 PM IST
The Reserve Bank of India has issued final guidelines for the classification of non-banking finance companies in the upper layer. As per the amended directions, any NBFC, which has an asset size of over Rs 1 lakh crore, will be considered as an upper layer NBFC, in a way simplifying the methodology for identifying such companies, as earlier a parametric methodology was being used.
RBI norms mandate that all upper-layer NBFCs (NBFC-UL) must list within three years of identification of NBFC-UL. Importantly, now those upper layer NBFCs that are fully owned and controlled by the government have been exempted from this key regulatory mandate.
Government-owned NBFC shall be guided by the concentration norms and limits applicable to it based on the layer in which it is classified, according to the RBI. Consequently, the exemptions from concentration norms granted to Government owned NBFCs shall stand withdrawn.
MUST READ: Why former Tata Group executives are NOT in favour of Tata Sons' listing
The Reserve Bank had on November 28, 2025 issued directions related to NBFC – registration, exemptions, and framework for scale-based regulation. There was a need to amend the directions based on a review of instructions pertaining to methodology for identification of NBFCs in the Upper layer and placement of Government-owned NBFCs in various layers as envisaged under the scale based regulatory framework for NBFCs, it said.
The upper layer comprises of those NBFCs that are specifically identified annually as warranting enhanced regulatory requirement based on the criteria provided in the directions.
MUST READ: Will Tata Sons finally list?
“The upper shall consist of NBFCs having asset size of Rs 1,00,000 crore and above as per the latest audited balance sheet for the financial year,” it said.
The criteria for identification of NBFC-UL shall be reviewed periodically, RBI said. It added that the asset size threshold for identification of NBFC-UL shall be reviewed every three years.
An updated list of upper layer NBFCs is yet to be released by the RBI. This would be crucial for Tata Sons. The holding company of the Tata conglomerate has been part of the earlier list and as per existing mandate must list within three years. Tata Sons itself had earlier sought to deregister itself as an upper layer NBFC - CIC (core investment company). That decision is pending with RBI.
Meanwhile, the large exposure framework (LEF) limit for NBFC - infrastructure finance companies (IFC) in the upper layer has also been revised to 45 per cent from 35 per cent.
MUST READ: Tata leads, Reliance dominates, Adani expands: India's new corporate order, reveals Hurun India 500
The Reserve Bank of India has issued final guidelines for the classification of non-banking finance companies in the upper layer. As per the amended directions, any NBFC, which has an asset size of over Rs 1 lakh crore, will be considered as an upper layer NBFC, in a way simplifying the methodology for identifying such companies, as earlier a parametric methodology was being used.
RBI norms mandate that all upper-layer NBFCs (NBFC-UL) must list within three years of identification of NBFC-UL. Importantly, now those upper layer NBFCs that are fully owned and controlled by the government have been exempted from this key regulatory mandate.
Government-owned NBFC shall be guided by the concentration norms and limits applicable to it based on the layer in which it is classified, according to the RBI. Consequently, the exemptions from concentration norms granted to Government owned NBFCs shall stand withdrawn.
MUST READ: Why former Tata Group executives are NOT in favour of Tata Sons' listing
The Reserve Bank had on November 28, 2025 issued directions related to NBFC – registration, exemptions, and framework for scale-based regulation. There was a need to amend the directions based on a review of instructions pertaining to methodology for identification of NBFCs in the Upper layer and placement of Government-owned NBFCs in various layers as envisaged under the scale based regulatory framework for NBFCs, it said.
The upper layer comprises of those NBFCs that are specifically identified annually as warranting enhanced regulatory requirement based on the criteria provided in the directions.
MUST READ: Will Tata Sons finally list?
“The upper shall consist of NBFCs having asset size of Rs 1,00,000 crore and above as per the latest audited balance sheet for the financial year,” it said.
The criteria for identification of NBFC-UL shall be reviewed periodically, RBI said. It added that the asset size threshold for identification of NBFC-UL shall be reviewed every three years.
An updated list of upper layer NBFCs is yet to be released by the RBI. This would be crucial for Tata Sons. The holding company of the Tata conglomerate has been part of the earlier list and as per existing mandate must list within three years. Tata Sons itself had earlier sought to deregister itself as an upper layer NBFC - CIC (core investment company). That decision is pending with RBI.
Meanwhile, the large exposure framework (LEF) limit for NBFC - infrastructure finance companies (IFC) in the upper layer has also been revised to 45 per cent from 35 per cent.
MUST READ: Tata leads, Reliance dominates, Adani expands: India's new corporate order, reveals Hurun India 500