RBI Released NBFC Upper Layer List for 2024-25

Current Context: On January 16, 2025, the Reserve Bank of India (RBI) released the NBFC Upper Layer List for 2024-25.

• This list includes major Non-Banking Financial Companies (NBFCs) such as Tata Sons Private Ltd, Bajaj Finance Ltd, LIC Housing Finance Ltd, and Aditya Birla Finance Ltd.
• Despite Tata Sons' proposal to deregister as an NBFC, it remains on the list.
• Being classified in the upper layer means that these NBFCs are subject to enhanced regulatory requirements, aimed at ensuring stability and mitigating systemic risks, for at least five years.
• This includes stricter capital adequacy norms, enhanced disclosures, and more robust governance frameworks.

Question:

1 For how long are NBFCs in the upper layer subject to enhanced regulatory requirements?

• A) At least one year
• B) At least three years
• C) At least five years
• D) At least ten years

Answer: C) NBFCs in the upper layer are subject to enhanced regulatory requirements for at least five years.