RBI hints Tata Sons may remain upper-layer NBFC
New Delhi, Aug. 5 -- The Reserve Bank of India (RBI) on Wednesday hinted that Tata Sons could remain classified as an upper-layer non-banking financial company (NBFC) under its revised principle-based framework, while signalling that the updated list of upper-layer NBFCs will be released shortly.
The clarification came after reporters sought to understand whether Tata Sons would continue to feature in the upper-layer category after the RBI replaced entity-specific classifications with a principle-based identification framework.
The upper layer comprises systemically important NBFCs that face tighter regulatory and supervisory requirements because of their size, interconnectedness and potential impact on financial stability.
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