Mumbai, April 13 -- The Reserve Bank of India's (RBI) latest proposal to classify non-banks with assets over Rs.1 trillion in the upper layer could leave little wiggle room for Tata Sons, save for the benevolence of the central bank. The holding firm of the eponymous group has been in the category in recent years, a classification that entails tighter regulatory oversight and a mandatory listing requirement.

The new norms, released on 10 April, currently in the form of a draft circular, take away a part of RBI's discretion in deciding who gets to be on the list. The defining criteria for a non-bank to enter the club now is if it has assets of Rs.1 trillion or more. Experts said this would indicate the inevitable continued inclusion of Ta...