RBI adds REC, PFC, IRFC to upper‑layer NBFCs, raises total to 17

In a recent announcement, the Reserve Bank of India expanded its upper‑layer NBFC list for FY 2026‑27 to include three fresh entrants – REC Limited, Power Finance Corporation (PFC) and Indian Railway Finance Corporation (IRFC). The addition brings the total number of upper‑layer NBFCs to seventeen, up from fifteen in the previous cycles.

The RBI’s upper‑layer classification is reserved for institutions that manage assets of at least one trillion rupees, subjecting them to more stringent regulatory oversight, enhanced risk‑management protocols and tighter compliance checks.

Tata Capital remains on the list, although the bank noted that its inclusion is separate from the outcome of the company’s de‑registration request, which is still pending review. The central bank also highlighted that the criteria were overhauled during FY 2025‑26, resulting in a delayed publication of that year’s list.

Two firms, PNB Housing Finance and Samman Capital, did not meet the new asset threshold and were omitted. However, because they were previously classified as upper‑layer, they will continue to be bound by the rigorous regulatory framework for at least five years, regardless of future performance.

The RBI reiterated that close monitoring of large NBFCs such as Bajaj Finance, Shriram Finance, LIC Housing Finance and Tata Capital is vital for ensuring the stability and transparency of the nation’s financial system.