On whether Tata Sons would remain on the upper-layer list, RBI Governor emphasised that the framework no longer hinges on entity-specific decisions, but on regulatory principles applicable across the sector
Tata Sons is expected to continue as an upper-layer Non-Banking Financial Company (NBFC-UL) under the Reserve Bank of India’s scale-based regulatory framework, with RBI Governor Sanjay Malhotra indicating that the classification remains principle-based and will continue to be governed by prescribed criteria.Responding to a query on whether Tata Sons would remain on the upper-layer list, the Governor emphasised that the framework no longer hinges on entity-specific decisions, but on regulatory principles applicable across the sector. “It is now principle based. So, as per those principles, everyone knows what is the list and that is where the matter stands,” said Malhotra.He further noted that entities meeting the stipulated criteria would continue in the category. “All those which meet the criteria, they continue,” he said, while declining to comment further on a specific company.The indication that Tata Sons will continue as an Upper-Layer NBFC assumes significance because entities in the NBFC-UL category are subject to enhanced regulatory requirements, including mandatory listing norms, unless they receive regulatory relief or cease to qualify for the category.When asked whether Tata Sons would continue to remain in the upper layer under the new list, the Governor indicated that the status remains unchanged, adding: “As mentioned, it is principle based and that will continue.”RBI’s updated listAn email sent to Tata Sons remained unanswered till the time of going to the press. The remarks suggest that Tata Sons’ pending application for deregistration as a core investment company (CIC) does not, at this stage, alter its regulatory treatment under the RBI’s framework. The RBI is expected to release the updated upper-layer list shortly, but the Governor’s comments indicate that entities currently meeting the threshold conditions will continue to be classified accordingly.The upper-layer category is subject to enhanced regulatory and supervisory requirements as part of the RBI’s scale-based regulation framework for NBFCs. Tata Sons was included in the RBI’s NBFC-UL list in 2022, bringing it under a stricter regulatory regime.Published on August 5, 2026
