Economy · 8 Aug 2026

NBFC Upper Layer RBI

With reference to the RBI's Scale Based Regulation (SBR) framework for NBFCs, which one of the following statements is correct?

ANBFCs classified as Upper Layer (NBFC-UL) are required to list on a stock exchange within three years and this status applies for a minimum of five years regardless of later eligibility.
BThe Scale Based Regulation framework was introduced in direct response to the 2008 global financial crisis.
CUpper Layer NBFCs are required to maintain a Common Equity Tier 1 capital of at least 15%.
DTata Sons was removed from the RBI's NBFC-UL list for 2026-27 after its application for deregistration was accepted.
This question is based on: Tata Sons Stays on RBI's Upper Layer List: A Debt-Free Balance Sheet Was Never the Point
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About this question

Why in news

The RBI's 2026-27 NBFC-UL list retained Tata Sons despite its pending application to deregister and exit the framework, reopening the standoff over whether the conglomerate must list publicly.

Why for UPSC

UPSC often tests whether aspirants know the precise triggering event behind a regulatory framework (IL&FS, not the 2008 crisis) and exact numerical thresholds (9% CET1, not a rounder but wrong figure like 15%).

Prelims summary

RBI's SBR framework, born from the 2018 IL&FS collapse, requires Upper Layer NBFCs to list within three years, maintain the classification for a minimum of five years and hold Common Equity Tier 1 capital of at least 9%. Tata Sons remains on the 2026-27 NBFC-UL list.

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