RBI's ₹1L Crore NBFC Rule: Does It Affect You?

RBI has tightened rules for large NBFCs: any company crossing ₹1 lakh crore in assets must list on stock exchanges. This removes earlier loopholes and could change how big lenders — including those you borrow from — operate.

Here's what happened: RBI now automatically classifies any NBFC crossing ₹1 lakh crore in assets as an 'Upper Layer' entity, removing earlier scoring discretion. Upper Layer NBFCs must mandatorily list on stock exchanges within 3 years of classification — no extensions or exemptions allowed. Stricter capital, governance, and disclosure norms apply to Upper Layer NBFCs, meaning tighter oversight of how they lend and manage risk.

What you should do: Check if your personal loan or home loan lender is an NBFC — visit RBI's website to see its category and financial health. Compare loan offers across banks and NBFCs now; regulatory tightening at large NBFCs may lead to stricter eligibility checks or higher rates. If you hold fixed deposits with an NBFC, verify its credit rating and deposit insurance status — NBFC deposits are NOT covered by DICGC.

NBFC fixed deposits are NOT insured by DICGC unlike bank FDs. Even a well-known NBFC can default — never park emergency money there without checking its credit rating first.