RBI Releases 2026-27 Upper Layer NBFC List

The Reserve Bank of India releases a list of 17 large non-banking finance companies (NBFCs) in the Upper Layer (UL) for 2026-27. The list includes Tata Sons and brings identified NBFCs under enhanced regulatory requirements for at least 5 years and mandatory listing within 3 years of identification.

RBI Scale-Based Regulation for NBFCs and 2026-27 NBFC-UL List:

Dimension	Key Details
Framework categories	The RBI framework categorises NBFCs into four layers: Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL).
Upper Layer identification	As per the RBI framework of scale-based regulation, the UL comprises NBFCs that RBI identifies annually as warranting enhanced regulatory requirements as stringent as commercial banks.
Asset size threshold for UL	The UL consists of NBFCs having an asset size of ₹100,000 crore and above, as per the latest audited balance sheet for the financial year.
Regulatory treatment after UL classification	Once an NBFC is classified as NBFC-UL, it will be subject to enhanced regulatory requirements for at least 5 years from its classification, even if it does not meet the criteria in subsequent years.
2026-27 NBFC-UL list	The 2026-27 NBFC-UL list comprises: Tata Sons; REC Ltd; Power Finance Corporation Ltd; Indian Railways Finance Corporation Ltd; Bajaj Finance; Shriram Finance; Tata Capital; LIC Housing Finance; Cholamandalam Investment & Finance; Muthoot Finance; Aditya Birla Capital; Housing & Urban Development Corporation; Mahindra Financial Services; L&T Finance; Bajaj Housing Finance; HDB Financial Services; and Piramal Finance.
Legal basis for NBFC registration	Non-banking financial companies are financial institutions registered under the Reserve Bank of India Act, 1934.
NBFC services and licensing status	An NBFC is a financial company that provides banking services like loans, credit, and investments, and it does not hold a full bank license.
Restrictions compared to banks	NBFCs cannot accept demand deposits like banks or issue self-drawn cheques.
Deposit insurance status	Deposits with NBFCs are not insured by government backing like bank deposits.
Registration and regulation	NBFCs are registered under the Companies Act and regulated by the Reserve Bank of India.