RBI releases Upper Layer NBFCs list for 2024-25: LIC Housing, Bajaj Finance, and more among 15 firms

The Reserve Bank of India (RBI) on Thursday released the list of 15 Non-Banking Financial Companies (NBFCs), Tata Capital Limited, categorised in the Upper Layer (NBFC-UL) for the year 2024-25.

The SBR framework, introduced on October 22, 2021, classifies NBFCs into four layers—Base Layer (BL), Middle Layer (ML), Upper Layer (UL), and Top Layer (TL)—based on their asset size and a scoring methodology.

NBFCs in the Upper Layer are subjected to enhanced regulatory requirements for a minimum of five years, even if they fail to meet the criteria in subsequent reviews.

Among the 15 NBFCs listed for 2024-25, major names include LIC Housing Finance, Bajaj Finance, Tata Sons Private Limited, and Muthoot Finance Limited.

Complete list of NBFC-UL for 2024-25:

1. LIC Housing Finance Limited

2. Bajaj Finance Limited

3. Shriram Finance Limited

4. Tata Sons Private Limited

5. Cholamandalam Investment and Finance Company Limited

6. L&T Finance Limited

7. Mahindra & Mahindra Financial Services Limited

8. Aditya Birla Finance Limited

9. Tata Capital Limited

10. Piramal Capital & Housing Finance Limited

11. PNB Housing Finance Limited

12. HDB Financial Services Limited

13. Sammaan Capital Limited

14. Muthoot Finance Limited

15. Bajaj Housing Finance Limited

The RBI clarified that Tata Sons Private Limited's inclusion in the list is subject to the outcome of its application for de-registration. Tata Capital, the financial services arm of Tata Sons, is reportedly preparing for ₹15,000 crore IPO.

Meanwhile, Piramal Enterprises Limited, which qualified for inclusion based on scoring, has been excluded due to ongoing group reorganisation.

“Despite qualifying for identification as NBFC-UL as per scoring methodology, Piramal Enterprises Limited is not being included in the list of NBFC-UL in the current review due to ongoing reorganisation in the business group,” the RBI said in a statement.

“Further, 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.”

NBFCs in the Upper Layer are selected using a combination of quantitative and qualitative parameters. However, the top ten NBFCs by asset size are automatically included in the list.