RBI notified a list of NBFCs in the Upper Layer (NBFC-UL) under Scale Based Regulations for NBFCs

Ankita Tiwari

29 Sep, 2023

The RBI has, on 14.09.2023, announced the list of NBFCs in the Upper layer under Scale-based Regulation for NBFCs for the year 2023-24. On 22.10.2021, the RBI issued the Scale Based Regulation (SBR), a Revised Regulatory Framework for NBFCs. The framework categories NBFCs in the Base layer (NBFC-BL), Middle layer (NBFC-ML), Upper layer (NBFC-UL) and Top Layer (NBFC-TL). It gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology. Accordingly, the 2023-24 list of NBFC-UL is as under:

Despite qualifying for identification as NBFC-UL as per scoring methodology, TMF Business Services Limited (formerly Tata Motors Finance Limited) is not being included in the list of NBFC_UL in the current review due to its ongoing business reorganisation. In terms of the framework, once an NBFC is classified as NBFC-UL, it will be subject to higher regulatory requirements for a period of at least five years from its classification in the layer, even if it is parametric. Does not meet the criteria. Subsequent years.