RBI retains Tata Sons in upper-layer NBFC list under revised norms

The Reserve Bank of India (RBI) on Thursday retained Tata Sons in the list of upper-layer non-banking financial companies (NBFCs), a day after Governor Sanjay Malhotra said the categorisation is based on objective principles rather than entity-specific decisions.

The central bank included Tata Sons, classified as a core investment company, in its list of 17 NBFCs identified under the Upper Layer (NBFC-UL) for 2026-27, based on their financial position as of March 31, 2026.

Apart from Tata Sons, the RBI's latest upper-layer list includes REC Ltd, Power Finance Corporation Ltd, Indian Railway Finance Corporation Ltd, Bajaj Finance Ltd, Shriram Finance Ltd, LIC Housing Finance Ltd, Cholamandalam Investment and Finance Company Ltd, Tata Capital Ltd, Muthoot Finance Ltd, Aditya Birla Capital Ltd, Housing and Urban Development Corporation Ltd, Mahindra & Mahindra Financial Services Ltd, L&T Finance Ltd, Bajaj Housing Finance Ltd, HDB Financial Services Ltd and Piramal Finance Ltd.

The RBI had not issued a list for 2025-26 as the criteria for identifying Upper Layer NBFCs were under review. Following the revision, the 2026-27 list has been drawn up under the updated norms.

The RBI also said PNB Housing Finance Ltd and Sammaan Capital Ltd, which were identified as upper-layer NBFCs in the 2024-25 exercise but no longer meet the latest criteria, will continue to remain in the category for the minimum five-year period prescribed under the framework.

At the post-monetary policy press conference on Wednesday, Malhotra had said companies meeting the prescribed criteria would continue to be included in the upper layer.

"It is principle-based. Anyone who meets the criteria, they continue," he said while responding to questions on the revised framework.

When asked specifically whether Tata Sons would remain in the upper layer, the governor declined to comment on an individual company, saying, "Let us not ask questions relating to a specific entity. The status is what it was earlier."

NBFCs with standalone audited assets of ₹1 lakh crore or more are considered for inclusion in the upper layer through an annual identification exercise, while the regulatory obligations applicable to upper-layer entities, including the listing requirement, remain unchanged.

According to its latest financial statements, Tata Sons has standalone assets of about Rs 1.75 lakh crore, above the prescribed threshold.

Tata Sons has been at the centre of a regulatory debate since September 2022, when it was classified as an upper-layer core investment company under the RBI's scale-based regulatory framework.

The classification required Tata Sons to list on stock exchanges within three years, a deadline that expired on September 30, 2025.

The company has instead sought to remain privately held and has applied to the RBI to surrender its certificate of registration as a core investment company after substantially reducing its debt.

If the RBI accepts the deregistration application, Tata Sons would cease to be regulated as an NBFC and could avoid the listing requirement.

"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 RBI said in the Thursday release.