INDUSTRY
RBI moots asset-based norms to classify large NBFCs, includes PSUs in the category
- IBJ Bureau
- Apr 11, 2026
The Reserve Bank of India (RBI) has proposed changes in the criteria for identifying upper-layer non-banking finance companies (NBFCs-UL).
The changes pitch for an asset size-based approach as against the earlier parametric system and inclusion of State-run entities.
According to the draft RBI (Non-Banking Financial Companies’ Registration, Exemptions and Framework for Scale-Based Regulation) Second Amendment Directions, 2026, NBFCs-UL will be those having assets of over Rs 1 lakh crore.
For transparent, simple and absolute criteria for identification of NBFC-UL, it is proposed to replace the existing methodology with asset-size criteria, which is currently proposed as Rs 1,00,000 crore and above,” the draft put on the RBI website has said.
The draft comes at a time when the listing of Tata Sons, the holding company of the salt-to-software conglomerate, is under intense scrutiny, and all eyes are focused on whether the entity, a core investment company, gets a reprieve.
According to the RBI mandate, the top-15 entities in the upper layer have to list, and only Tata Sons had not gone for listing, even after the October 2025 deadline, despite featuring in the list.
Tata Sons had an asset base of Rs 1.75 lakh crore as of March 2025. A slew of State-run enterprises, which are large enough in size, had earlier been excluded in the UL list.
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