RBI likely to increase the number of NBFCs under upper layer list

RBI may expand the upper layer of NBFCs amid rising size and interconnectedness, bringing more large public and private sector NBFCs under enhanced regulatory norms

The Reserve Bank of India (RBI) is likely to increase the number of non-banking financial companies (NBFCs) classified under the upper layer, which are subject to enhanced regulatory requirements, sources said. This comes as some of these entities have grown in size and their interconnectedness with the broader financial sector has increased. 

The sources added that some of big public-sector NBFCs may be added to the upper layer list. Some of them have a loan book of over ₹5 trillion. Though much less in number, such entities had a substantial share in NBFC sector’s total assets.

  NBFCs of large industrial