NBFCs with Rs 1 lakh crore asset size to fall under 'Upper Layer' category
Last Updated:June 24, 2026, 20:45 ISTRepresentational image (Image: News18)Mumbai, Jun 24 (PTI) Non-banking financial companies having an asset size of Rs 1 lakh crore and above will fall under the ‘Upper. . .
Last Updated:June 24, 2026, 20:45 ISTRepresentational image (Image: News18)Mumbai, Jun 24 (PTI) Non-banking financial companies having an asset size of Rs 1 lakh crore and above will fall under the ‘Upper Layer’ category, replacing the existing methodology for identification of such entities with a simple and absolute criteria. NBFCs in ‘Upper Layer’ warrant enhanced regulatory requirement, the Reserve Bank said on Tuesday. There is a need to amend the extant norms based on a review of instructions pertaining to methodology for the identification of NBFCs in the Upper Layer and placement of government-owned non-banking financial companies (NBFCs) in various layers. The RBI regulate NBFCs based on their size, risk profile, and systemic importance. NBFCs are classified as — NBFC-Base Layer, NBFC-Middle Layer, NBFC-Upper Layer, and NBFC-Top Layer — under scale-based regulation. The Upper Layer would comprise those NBFCs which are specifically identified annually by the Reserve Bank as warranting enhanced regulatory requirement, said the Reserve Bank of India (NonBanking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Second Amendment Directions, 2026. “The Upper Layer shall consist of NBFCs having asset size of Rs 1,00,000 crore and above as per the latest audited balance sheet for the financial year," it said on the criteria for identification of NBFCs in the Upper Layer. It further said the criteria for identification of NBFC-Upper Layer (UL) should be reviewed periodically. Further, the asset size threshold for the identification of NBFC-UL should be reviewed every three years. The RBI said NBFCs, which are group entities of a commercial bank, should adhere to the applicable provisions in case a particular business/activity is being undertaken by both the NBFC and its parent bank. “These provisions are applicable to the NBFCs which are group entities of scheduled commercial banks, irrespective of their layer-wise classification as per the provisions of these Directions," it said. However, such NBFCs would continue to be classified in the layer as per the regulatory structure under scale-based regulation, it added. For example, the RBI said that if an Infrastructure Debt Fund (IDF-NBFC), which is a group entity of a scheduled commercial bank, the regulations as applicable to NBFC – Upper Layer, other than the requirement of listing, should be applicable to the IDF -NBFC. However, the IDF-NBFC will continue to be in the middle layer as per the regulatory structure under Scale-Based Regulation. PTI MSU NKD NKD BAL BAL(This story has not been edited by News18 staff and is published from a syndicated news agency feed -PTI)News18 NewsletterHandpicked stories, in your inboxA newsletter with the best of our journalismFirst Published:June 24, 2026, 20:45 ISTNewsagency-feedsNBFCs with Rs 1 lakh crore asset size to fall under 'Upper Layer' categoryDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to ourTerms of UseandPrivacy Policy. Loading comments. . . Read More