Tata Sons remains classified as an upper-layer NBFC: RBI Gov Sanjay Malhotra

Tata Sons continues to be classified as an upper-layer non-banking financial company, RBI Governor Sanjay Malhotra said on Wednesday, emphasising that the framework is now principle-based. The Reserve Bank of India is still considering Tata Sons’ application to surrender its NBFC-Core Investment Company licence, which leaves uncertainty over its listing status.

At the post-monetary policy press conference, Malhotra stated that the company’s status remains unchanged as the RBI moves to a principle-based approach for classifying NBFCs. Deputy Governor Shirish Murmu added that the updated upper-layer list would be released very soon.

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When asked about the publication of the 2025-26 upper-layer NBFC list, Malhotra said it is now principle-based and everyone knows what the list is. The RBI had released the 2024-25 upper-layer list in January 2025, with the previous year’s list also published in January.

Malhotra explained that all entities meeting the criteria for upper, middle, and lower layer NBFCs continue to be on the list. The new list will follow the principle-based approach and the status remains as before. He added that the classification of NBFCs into upper, middle, and base layers is now clear to all.

Under revised norms effective from June, NBFCs with assets exceeding ₹1 lakh crore qualify for the upper layer. These entities face enhanced regulation and must list on stock exchanges within three years of classification. Tata Sons’ standalone assets exceed ₹1.75 lakh crore. It was first classified as an upper-layer NBFC in 2022 and remains on the latest list published in 2025.

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Previously, the scale-based regulatory framework identified upper-layer NBFCs using a scoring model with quantitative and qualitative parameters weighted at 70 per cent and 30 per cent respectively.

Despite this, uncertainty remains over Tata Sons’ proposed listing as the RBI has not yet decided on its application to surrender the CIC licence. Tata Sons applied in 2024 for de-registration after becoming debt-free, which would allow it to remain a privately held, unlisted company. The application is still pending after the September 30, 2025 listing deadline.