RBI Releases Second List of Upper Layer NBFCs

The Reserve Bank of India released the updated list of Upper Layer Non-Banking Financial Companies for 2026-27 on 6 August 2026. The list contains 17 entities, compared with 15 in the previous list, and it includes Tata Sons Private Limited, four public sector undertakings, and several private sector financial companies.

Upper Layer NBFCs under RBI regulation

Non-Banking Financial Companies are financial institutions registered under the Reserve Bank of India Act, 1934, and they cannot accept demand deposits like banks. The RBI classifies NBFCs under a scale-based regulatory framework into Base Layer, Middle Layer, Upper Layer, and Top Layer.

Asset size criterion for identification

The RBI revised the identification rule for Upper Layer NBFCs in June 2026 by introducing an asset size threshold of ₹1 lakh crore or more. This threshold is used to identify systemically important entities for tighter supervision under the scale-based framework.

Entities in the 2026-27 list

The RBI added REC Limited, Power Finance Corporation, Indian Railway Finance Corporation, and Housing and Urban Development Corporation to the Upper Layer list for the first time. PNB Housing Finance Ltd. and Sammaan Capital Ltd. were excluded from the list after failing to meet the revised asset size criterion.

Important Facts for Exams

• The Reserve Bank of India introduced the scale-based regulatory framework for NBFCs to apply differentiated supervision based on size and risk profile.
• Upper Layer NBFCs are subject to stricter regulatory requirements than Middle Layer NBFCs under RBI norms.
• Private sector NBFCs in the Upper Layer are required to list their shares on stock exchanges within three years of identification, subject to RBI rules.
• Tata Sons Private Limited remains under examination for its application to surrender Core Investment Company registration.

Core Investment Companies and listing rule

Core Investment Companies are NBFCs that hold shares in group companies and meet specific asset and investment conditions under RBI norms. Tata Sons Private Limited had applied in August 2024 to surrender its Core Investment Company registration, and the application remains under examination.

Regulatory status of excluded entities

PNB Housing Finance Ltd. and Sammaan Capital Ltd. continue to remain under enhanced Upper Layer regulation because of the mandatory five-year lock-in period. The RBI applies this lock-in rule to maintain continuity in supervision after an NBFC enters the Upper Layer category.