NBFC-UL is under Scale Based Regulation for NBFCs
FinTech BizNews Service
Mumbai, January 16, 2025: The Reserve Bank of India announced today the list of NBFCs in the Upper Layer under Scale Based Regulation for NBFCs for the year 2024-25.
2. The Reserve Bank had issued the Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs (the framework) 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 2024-25 list of NBFC-UL is as under:
| Sl. No. | Name of the NBFC | Category of the NBFC |
| 1 | LIC Housing Finance Limited | Deposit taking HFC |
| 2 | Bajaj Finance Limited | Deposit taking NBFC-ICC |
| 3 | Shriram Finance Limited | Deposit taking NBFC-ICC |
| 4 | Tata Sons Private Limited | Core Investment Company |
| 5 | Cholamandalam Investment and Finance Company Limited | Non-deposit taking NBFC-ICC |
| 6 | L&T Finance Limited (Formerly known as L&T Finance Holdings Limited) | Non-deposit taking NBFC-ICC |
| 7 | Mahindra & Mahindra Financial Services Limited | Deposit taking NBFC-ICC |
| 8 | Aditya Birla Finance Limited | Non-deposit taking NBFC-ICC |
| 9 | Tata Capital Limited | Non-deposit taking NBFC-ICC |
| 10 | Piramal Capital & Housing Finance Limited | Non-deposit taking HFC |
| 11 | PNB Housing Finance Limited | Deposit taking HFC |
| 12 | HDB Financial Services Limited | Non-deposit taking NBFC-ICC |
| 13 | Sammaan Capital Limited (Formerly known as Indiabulls Housing Finance Limited) | Non-deposit taking NBFC-ICC |
| 14 | Muthoot Finance Limited | Non-deposit taking NBFC-ICC |
| 15 | Bajaj Housing Finance Limited | Non-deposit taking HFC |
| HFC: Housing Finance Company; NBFC-ICC: Non-Banking Financial Company –Investment and Credit Company. | ||
3. 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. 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.
4. 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.
