RBI Adds 4 PSUs to NBFC-UL List for FY27; Tata Sons Retained

The Reserve Bank of India (RBI) has issued its updated roster of upper layer Non-Banking Financial Companies (NBFCs) for FY27. This new compilation, released under a revised scale-based regulation framework, notably expands the number of entities subject to enhanced oversight.

Expansion of Regulated Entities

The central bank’s latest identification process has brought four additional public sector infrastructure and development finance institutions into the NBFC-Upper Layer (NBFC-UL). These entities are now deemed systemically important due to updated criteria.

• REC Limited
• Power Finance Corporation
• Indian Railway Finance Corporation
• Housing and Urban Development Corporation

Notably, Tata Sons continues to feature on this critical list, despite having previously submitted an application to deregister itself as an NBFC. Its consistent presence highlights its continued systemic significance.

Key Figures and Regulatory Shifts

This expansion and revision follow the RBI’s comprehensive review of its identification criteria for upper layer NBFCs. The central bank had not released a similar list for the preceding fiscal year, FY26, underscoring the significance of this update.

• The total number of entities under NBFC-UL regulations has risen from 15 to 19.
• The updated list applies for FY27.

Beyond public sector additions, the updated list also reflects shifts within the private sector. Aditya Birla Capital has replaced Aditya Birla Finance, and Piramal Finance is now explicitly listed under its current name, indicating ongoing adjustments in the financial landscape.

The inclusion of these new entities and the continued presence of others like Tata Sons signal the RBI’s evolving approach to managing systemic risk within the non-banking financial sector. These regulations aim to ensure greater stability and oversight in a growing segment of the Indian economy.