 "RBI, Reserve Bank of India")
The Reserve Bank of India (RBI) on Thursday announced the list of non-banking financial corporations (NBFC)s in the upper layer under scale-based regulation for NBFCs for the year 2023-24.
The RBI had issued the scale based regulation (SBR) on October 22, 2021. The framework categorises NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL) and gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology. Accordingly, the 2023-24 list of NBFC-UL is as under:
Name of the NBFC
LIC Housing Finance Limited
Bajaj Finance Limited
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Shriram Finance Limited (formerly Shriram Transport Finance Company Limited)
Tata Sons Private Limited
L & T Finance Limited
Piramal Capital & Housing Finance Limited
Cholamandalam Investment and Finance Company Limited
Indiabulls Housing Finance Limited
Mahindra & Mahindra Financial Services Limited
Tata Capital Financial Services Limited
PNB Housing Finance Limited
HDB Financial Services Limited
Aditya Birla Finance Limited
Muthoot Finance Limited
Bajaj Housing Finance Ltd.
RBI further said on the website that despite qualifying for identification as NBFC-UL as per scoring methodology, 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.
In terms of the framework, once an NBFC is classified as NBFC-UL, it shall be subject to enhanced regulatory requirement, 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.
