RBI Announced Top 15 NBFCs Under the Upper Layer

  • September 15, 2023
  • Registrationwala
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The Reserve Bank of India (RBI) announced a notification on September 14th, 2023 about a list of the top 15 NBFCs. This list includes 15 non-banking financial companies placed under the upper layer per the scale-based regulation for 2023-24.

 

On October 22, 2021, the RBI issued a Scale Based Regulation: A Revised Regulatory Framework for NBFCs. In this framework, the categorisation of NBFCs is given which is divided into four layers: 

  1. Base Layer (NBFC-BL)
  2. Middle Layer (NBFC-ML)
  3. Upper Layer (NBFC-UL)
  4. Top Layer (NBFC-TL)

The Upper Layer must comprise those NBFCs which are specifically identified by the Reserve Bank as warranting enhanced regulatory requirements based on a set of parameters. Check the detailed categorisation of NBFC here.

SI.No.

Name of the NBFC

Category of the NBFC

  1.  

LIC Housing Finance Limited

Deposit taking HFC

  1.  

Bajaj Finance Limited

Deposit taking NBFC-ICC

  1.  

Shriram Finance Limited (formerly Shriram Transport Finance Company Limited)

Deposit taking NBFC-ICC

  1.  

Tata Sons Private Limited

Core Investment Company (CIC)

  1.  

L & T Finance Limited

Non-deposit taking NBFC-ICC

  1.  

Piramal Capital & Housing Finance Limited

Non-deposit taking HFC

  1.  

Cholamandalam Investment and Finance

Non-deposit taking NBFC-ICC

  1.  

Indiabulls Housing Finance Limited

Non-deposit taking HFC

  1.  

Mahindra & Mahindra Financial Services

Deposit taking NBFC-ICC

  1.  

Tata Capital Financial Services Limited

Non-deposit taking NBFC-ICC

  1.  

PNB Housing Finance Limited

Non-deposit taking HFC

  1.  

HDB Financial Services Limited

Non-deposit taking NBFC-ICC

  1.  

Aditya Birla Finance Limited

Non-deposit taking NBFC-ICC

  1.  

Muthoot Finance Limited

Non-deposit taking NBFC-ICC

  1.  

Bajaj Housing Finance Ltd.

Non-deposit taking HFC


The TMF Business Services Limited (formerly Tata Motors Finance Limited) is not being included in the list of NBFC-UL in the current review due to its ongoing business reorganisation. This is done to create an equal qualification for identification as NBFC-UL.

Scoring Methodology for NBFC Upper Layer

The scoring methodology for identification of an NBFC as NBFC-UL must be based

on the set of NBFCs fulfilling the following criteria:

  • Top 50 NBFCs (excluding top ten NBFCs based on asset size, which automatically falls in the Upper Layer) based on their total exposure including credit equivalent of off-balance sheet exposure.
  • NBFCs were designated as NBFC-UL in the previous year.
  • NBFCs are added to the set by supervisors using supervisory judgment.

 

In terms of the framework, once an NBFC is classified as NBFC-UL, it must 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 parametric criteria in the subsequent year/s.

 

Also read: Sahara Refund Portal - Check How to Claim Refund?


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