RBI lists 16 NBFCs in upper layer, includes Tata Sons | The Financial Express

RBI lists 16 NBFCs in upper layer, includes Tata Sons

Despite appearing in the list of top 10 NBFCs in terms of asset size, HDFC is not being included in the list due to ongoing merger process with HDFC Bank, RBI said.

RBI lists 16 NBFCs in upper layer, includes Tata Sons
The RBI has directed these NBFCs to adopt to the enhanced regulatory framework and chart out an implementation plan in three months

The Reserve Bank of India (RBI) on Friday announced the list of non-banking finance companies (NBFCs) in the upper layer under its scale-based regulation. Some of the prominent entities on the list include Tata Sons, LIC Housing Finance, Bajaj Finance, HDB Financial Services and Piramal Capital & Housing Finance.

Despite appearing in the list of top 10 NBFCs in terms of asset size, HDFC is not being included in the list due to ongoing merger process with HDFC Bank, RBI said. 

Of the total NBFCs listed by the central bank, 10 are non-deposit taking NBFCs, five are deposit taking non-banks while Tata Sons is a core investment company.The RBI has directed these NBFCs to adopt to the enhanced regulatory framework and chart out an implementation plan in three months. The shadow banks will have to ensure that the norms are followed in 24 months.

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The RBI in June had said the upper layer NBFCs, must maintain certain level of provisioning for some categories of standard assets. NBFCs in this category will need to make provision of 2% on standard assets for housing loans disbursed at teaser rates. So far, systemically important NBFCs make standard asset provision at a flat rate of 0.4%.

In October 2021, the RBI introduced the scale-based regulatory structure for NBFCs. The structure consists of four layers based on size, activity and perceived riskiness — base layer, middle layer, upper layer and top layer. The intent behind these regulations is to bring more stability to the shadow banking sector.  

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