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The Reserve Bank of India (RBI) has taken a very big and stringent step to increase transparency and financial stability in the non-banking financial sector (NBFC Sector) of the country. The central bank has now made the rules for placing non-banking financial companies (NBFCs) with asset size of Rs 1 lakh crore or more in the ‘Upper Layer’ (NBFC-UL) category very simple and concrete.
After this new decision of RBI, now the biggest impact will be on the holding company of the country’s leading corporate house Tata Group. Tata Sons But is going to fall. Due to the new and stringent regulatory framework, now all avenues for Tata Sons to avoid listing in the stock market are almost closed. Let us understand in detail what this new rule of the Reserve Bank is and why it has increased the problems of Tata Sons.
Now what is the new criteria for identification of upper layer NBFC?
Under the earlier framework, a complex scoring method based on the size, interconnectedness and complexity of companies was used to identify upper layer NBFCs. But now the central bank has removed this complex method and adopted a clean and straightforward criterion.
As per the new amendment instructions, 2026:
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1 lakh crore rule: Now all those NBFCs will be part of the upper layer, whose total asset size as per the latest audited balance sheet of the current financial year. Rs 1,00,000 crore or more Is.
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Review every 3 years: This asset size limit of Rs 1 lakh crore will be reviewed from time to time and this limit will be re-examined every 3 years.
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Rules for group entities: If an NBFC is a group entity of a commercial bank and both are carrying on a similar business or activity, then that NBFC will have to follow all the stringent rules, no matter which layer it falls in.
4 categories of NBFC under Scale Based Regulation (SBR)
The Reserve Bank regulates NBFCs based on their financial risk profile and their importance to the country’s economy. Under this, the entire sector is divided into four layers:
| layer name | Which companies come in this? |
| 1. NBFC-Base Layer (NBFC-BL) | The lowest tier of companies, which are subject to fewer regulations. |
| 2. NBFC-Middle Layer (NBFC-ML) | Medium sized NBFC. |
| 3. NBFC-Upper Layer (NBFC-UL) | Top companies with assets above Rs 1 lakh crore, which are subject to strict rules. |
| 4. NBFC-Top Layer (NBFC-TL) | If a company in the upper layer poses a huge risk to the system, then it is put in this top layer. |
How was the way for Tata Sons to remain private closed?
After this clarification regarding upper layer NBFC, now the entire financial market is keeping an eye on Tata Sons, the parent company of Tata Group. Tata Sons is currently registered with the Reserve Bank as a Core Investment Company (CIC).
Controversy and background:
RBI had included Tata Sons in the list of ‘upper-layer NBFC’ in the year 2022 itself. According to the rules, it was mandatory for any company falling in this category to be listed in the stock market within three years i.e. by September 2025. But Tata Sons wanted to avoid the stringent obligations of listing on the stock exchange, for which it applied to RBI to cancel its CIC license and surrender its NBFC registration.
Why did the difficulties increase?
According to the latest financial analysis by Economic Times Intelligence Group (ETIG), Tata Sons’ net worth on standalone basis alone is around Rs. Rs 1.9 lakh crore Is of. This is much higher than the new limit of Rs 1 lakh crore set by RBI. The consolidated market cap of the company has crossed more than $300 billion.
RBI has made it clear that it will not give any special relaxation to any company in the rules. In such a situation, since the asset size of Tata Sons is very large, it will automatically remain in the upper layer. Experts believe that after this clear stand, the remaining possibilities of Tata Sons remaining a ‘Private Limited’ company have also ended and in the coming time, it will have to launch its IPO in the Indian stock market.