- The RBI released the updated list of Upper Layer NBFCs for 2026-27 on 6 August 2026, containing 17 entities, up from 15 in the previous list, and including Tata Sons Private Limited, four public sector undertakings, and several private sector financial companies.
- 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, while PNB Housing Finance Ltd. and Sammaan Capital Ltd. were excluded after failing to meet the revised asset size criterion.
- In June 2026, the RBI revised the identification rule for Upper Layer NBFCs by introducing an asset size threshold of ₹1 lakh crore or more to identify systemically important entities for tighter supervision under the scale-based framework.
- 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, which the RBI applies to maintain continuity in supervision after an NBFC enters the Upper Layer category.
The Reserve Bank of India (RBI) has updated its Upper Layer Non-Banking Financial Company (NBFC) list, increasing the total from 15 to 17 entities. This includes Tata Sons Private Limited and four public sector undertakings (PSUs) for the first time: REC Limited, Power Finance Corporation, Indian Railway Finance Corporation, and Housing and Urban Development Corporation.12
The RBI's revision of the identification rules in June 2026 introduced a new asset size threshold of ₹1 lakh crore or more, aimed at identifying systemically important entities for enhanced supervision under a scale-based framework. This move is part of the RBI's ongoing efforts to ensure tighter regulation of significant financial players in the market.
Notably, PNB Housing Finance Ltd. and Sammaan Capital Ltd. were excluded from the list after failing to meet the revised asset size criterion, although they remain under enhanced Upper Layer regulation due to a mandatory five-year lock-in period. This lock-in rule is designed to maintain continuity in supervision after an NBFC enters the Upper Layer category.4
Tata Sons had previously applied in August 2024 to surrender its Core Investment Company registration, with the application still under examination, indicating ongoing regulatory scrutiny of its financial operations.
“The revised asset size threshold of ₹1 lakh crore or more, introduced in June 2026, drove the exclusion of PNB Housing Finance and Sammaan Capital, though both remain under enhanced regulation due to the five-year lock-in period. REC, Power Finance Corporation, Indian Railway Finance Corporation, and HUDCO were added for the first time.”
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