RBI releases new NBFC upper-layer list

Why in News?

The Reserve Bank of India (RBI) on 6 August 2026 released its latest list of Upper Layer Non-Banking Financial Companies (NBFC-UL) under its Scale-Based Regulation (SBR) framework. The list now contains 17 NBFCs, compared with 15 in the previous list for FY25.

New Entrants

Four state-owned financial institutions have been added to the Upper Layer:

• REC Ltd
• Power Finance Corporation (PFC)
• Indian Railway Finance Corporation (IRFC)
• Housing and Urban Development Corporation (HUDCO)

At the same time, PNB Housing Finance Ltd and Sammaan Capital Ltd have been removed from the list.

Why Upper Layer Classification Matters

The Upper Layer consists of systemically important NBFCs whose large size, interconnectedness and complexity can have wider implications for financial stability.

NBFCs placed in this category face enhanced regulatory supervision, including stricter requirements relating to:

• Capital adequacy
• Corporate governance
• Risk management
• Disclosure and transparency

RBI’s Scale-Based Regulation Framework

The RBI classifies NBFCs into four regulatory layers based on factors such as asset size, leverage, complexity and systemic importance:

Layer	Broad Classification
Base Layer (NBFC-BL)	Non-deposit-taking NBFCs with assets below ₹1,000 crore
Middle Layer (NBFC-ML)	All deposit-taking NBFCs and non-deposit-taking NBFCs with assets of ₹1,000 crore and above
Upper Layer (NBFC-UL)	Systemically important NBFCs identified by RBI, including those meeting the ₹1 lakh crore asset-size threshold
Top Layer	Reserved for NBFCs posing exceptional or extreme systemic risk

CLICK HERE: UPSC PRELIMS & MAINS CURRENT AFFAIRS BASED WEEKLY TEST (ENG & HINDI)

CLICK HERE FOR GS TIMES PRAHAR UPSC GS MAINS TEST SERIES 

CLICK HERE: DAILY CURRENT AFFAIRS QUIZ (FOR ALL EXAMINATIONS)