The Reserve Bank of India (RBI), on Thursday, announced the names of non-banking finance companies (NBFCs) in the upper layer under Scale Based Regulation for NBFCs for 2023-24.
Fifteen NBFCs, including LIC Housing Finance Limited, Bajaj Finance Limited, Shriram Finance Limited, Tata Sons Private Limited, and L & T Finance Limited, feature in the list.
Other NBFCs on the list are: 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 and Bajaj Housing Finance Ltd.
The central regulatory body said although TMF Business Services Limited (formerly Tata Motors Finance Limited) qualified for identification as NBFC-UL as per scoring methodology, it is not being included in the list in the current review due to its ongoing business reorganisation.
Once an NBFC is classified as NBFC-UL, it will 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, RBI said.
In 2021, the RBI had announced a four-layered—Base Layer, Middle Layer, Upper Layer and Top Layer—regulatory structure for NBFCs in an attempt to bring in stricter surveillance on shadow banks.
