Now Reading: RBI adds four PSUs to NBFC upper layer; Tata Sons stays
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RBI adds four PSUs to NBFC upper layer; Tata Sons stays
The Reserve Bank of India added REC, PFC, IRFC and HUDCO to its NBFC-Upper Layer list for FY27, subjecting them to bank-grade regulations. The revised list, released on August 6, marks the…
The Story in Brief
The Reserve Bank of India added REC, PFC, IRFC and HUDCO to its NBFC-Upper Layer list for FY27, subjecting them to bank-grade regulations. The revised list, released on August 6, marks the first update since January 2025 and sees the total regulated entities rise to 19. Tata Sons remains on the list despite seeking de-registration as an NBFC. PNB Housing Finance and Sammaan Capital continue under the layer despite no longer meeting the criteria. The RBI raised the identification threshold after not publishing a list for FY26.
The Indian Opinion
The inclusion of four state-run lenders in the upper layer is being sold as either a sign of their systemic heft or an unnecessary regulatory clampdown. Neither view is complete. These entities already function like banks in infrastructure lending and deserve commensurate oversight. The real question is whether the stricter capital and governance norms will crimp their ability to finance large projects. Watch how their lending patterns change in the next two quarters.
Sources (2): timesofindia.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
