The Reserve Bank of India (RBI) on Thursday released the list of Non-Banking Financial Companies (NBFCs) that will form the Upper Layer under its Scale Based Regulation for the fiscal year 2023-24. Notably, TMF Business Services Limited, despite qualifying for inclusion, was not listed due to ongoing business reorganisation.
The list includes prominent companies such as Bajaj Finance, LIC Housing, Shriram Finance, and Tata Sons Pvt Limited among a total of 15 NBFCs. LIC Housing Finance Limited topped the list, followed by Bajaj Finance Limited and Shriram Finance Limited.
The RBI's list is part of the Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs. This framework, issued on October 22, 2021, categorises NBFCs into four layers: Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL). The categorisation is based on each company's asset size and a specific scoring methodology.
Despite meeting the criteria for identification as an NBFC-UL according to this scoring methodology, TMF Business Services Limited (formerly Tata Motors (NYSE:TTM) Finance Limited) was not included in this year's list. The RBI cited the company's ongoing business reorganisation as the reason for this exclusion.
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