RBI releases list of NBFCs in the Upper Layer (NBFC-UL) for 2024-25

No new addition or deletion of NBFCs for 2024-25 from 2023-24

The Reserve Bank of India has announced the list of NBFCs in the Upper Layer under Scale Based Regulation for NBFCs for the year 2024-25. The Reserve Bank had issued the Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs (the framework) on 22 October 2021. The framework categorises NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL) and gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology.

Accordingly, the 2024-25 list of NBFC-UL is as under:

 

1 LIC Housing Finance - Deposit taking HFC

2 Bajaj Finance - Deposit taking NBFC-ICC

3 Shriram Finance - Deposit taking NBFC-ICC

4 Tata Sons Private - Core Investment Company

5 Cholamandalam Investment and Finance Company - Non-deposit taking NBFC-ICC

6 L&T Finance (Formerly known as L&T Finance Holdings) - Non-deposit taking NBFC-ICC

7 Mahindra & Mahindra Financial Services - Deposit taking NBFC-ICC

8 Aditya Birla Finance - Non-deposit taking NBFC-ICC

9 Tata Capital - Non-deposit taking NBFC-ICC

10 Piramal Capital & Housing Finance - Non-deposit taking HFC

11 PNB Housing Finance - Deposit taking HFC

12 HDB Financial Services - Non-deposit taking NBFC-ICC

13 Sammaan Capital (Formerly known as Indiabulls Housing Finance) - Non-deposit taking NBFC-ICC

14 Muthoot Finance - Non-deposit taking NBFC-ICC

15 Bajaj Housing Finance - Non-deposit taking HFC

Despite qualifying for identification as NBFC-UL as per scoring methodology, Piramal Enterprises is not being included in the list of NBFC-UL in the current review due to ongoing reorganisation in the business group. Further, inclusion of Tata Sons in the list of NBFC-UL is without prejudice to the outcome of its application for de-registration, which is under examination.

In terms of the framework, once an NBFC is classified as NBFC-UL, it shall be subject to enhanced regulatory requirement, at least for a period of five years from its classification in the layer, even in case it does not meet the parametric criteria in the subsequent year/s.

Powered by Capital Market - Live News