RBI Keeps Tata Sons on Upper‑Layer NBFC List

The Reserve Bank of India (RBI) has retained Tata Sons Private Limited in its list of Upper‑Layer non‑banking financial companies (NBFC‑UL) for the 2026‑27 period under a newly notified principle‑based framework. The RBI said the inclusion is "without prejudice to the outcome of its application for de‑registration," which remains under examination. The upper‑layer list has grown to 17 entities, up from 15, and subjects listed firms to enhanced regulatory oversight for at least five years and a requirement to list on a stock exchange within three years.

Tata Sons, with assets exceeding ₹2 trillion, had repaid all its debt by March 2024 and applied in August 2024 to cancel its NBFC‑CIC registration to avoid a mandatory listing. Noel Tata, chairman of Tata Trusts, wrote to the RBI opposing any listing, arguing it could undermine the trusts' philanthropic objectives. The issue has featured in internal discussions about Tata Group chairman N. Chandrasekaran’s third‑term reappointment. The RBI’s expanded list also added government‑owned NBFCs such as Power Finance Corporation, REC (to be merged with PFC), Indian Railway Finance Corporation, PNB Housing Finance and Sammaan Capital.