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The Reserve Bank of India on Thursday classified Tata Sons Private Limited as an Upper-Layer Non-Banking Financial Company (NBFC) under its newly notified principle-based identification framework for 2026-27.
The RBI also clarified that this would not affect the pending Tata Sons' application to give up its NBFC registration. "Inclusion of Tata Sons Private Limited in the list of NBFC-UL is without prejudice to the outcome of its application for de-registration, which is under examination," the central bank noted in its official document. Addressing the media about the NBFC categorisations at the Monetary Policy Committee (MPC) press conference on Wednesday, the RBI Governor Sanjay Malhotra said "It is principle-based; anyone who meets the criteria will continue." Under revised norms effective from June, NBFCs with assets exceeding Rs 1 trillion are classified in the upper layer, triggering tighter regulatory oversight and a requirement to list within three years. Tata Sons, with standalone assets of over Rs 2 trillion as of March 2026, falls within this category. According to a press release issued by the central bank on Thursday, the identification of NBFCs in the upper layer follows a comprehensive review of the framework. The categorization is contained in the Reserve Bank of India Directions, 2025, which structure entities into Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL). "A review of the criteria for identification of NBFC-UL was undertaken during 2025-26 and hence, the list of NBFC-UL for the year 2025-26 was not issued," the RBI stated. "Subsequent to the issue of the revised criteria, the list of NBFC-UL for the year 2026-27 has been prepared based on the revised criteria," the central bank added. The central bank clarified that the classification of Tata Sons Private Limited, which is registered as a Core Investment Company, remains subject to administrative review. "Further, in terms of the framework, once an NBFC is classified as NBFC-UL, it shall be subject to enhanced regulatory requirements, at least for a period of five years from its classification in the layer, even in case it does not meet the criteria in the subsequent year/s," the RBI highlighted. Other than Tata Sons, the list of 17 entities placed under the upper layer for 2026-27 includes major infrastructure and financial institutions such as REC Limited, Power Finance Corporation Limited, Indian Railway Finance Corporation Limited, Bajaj Finance Limited, and Shriram Finance Limited. Additionally, two entities identified in previous exercises, PNB Housing Finance Limited and Capital Sammaan Limited, will continue in the upper layer under the five-year rule. (ANI)
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