Reserve Bank of India

RBI releases list of NBFCs in the Upper Layer (NBFC-UL) under Scale Based Regulation for NBFCs

On August 6, 2026, the Reserve Bank of India (RBI) announced a series of regulatory updates, guidelines, and financial operations. Key among these was the release of the list of Non-Banking Financial Companies (NBFCs) in the Upper Layer (NBFC-UL) under Scale Based Regulation for the year 2026-27, based on financial data as of March 31, 2026. Additionally, the RBI initiated several public consultations, releasing draft directions on credit facilities for NBFCs, concentration risk management for rural co-operative banks, and guidelines for 'on tap' licensing of Urban Co-operative Banks (UCBs). The central bank also issued final amendment directions regarding the conduct of regulated entities in loan recovery and the engagement of recovery agents, following a feedback period that began with a revised draft on May 20, 2026. In terms of enforcement, the RBI announced a monetary penalty of ₹40,000 on Kedarnath Urban Co-operative Bank Ltd. in Latur, Maharashtra, citing non-compliance with Know Your Customer (KYC) and Supervisory Action Framework (SAF) directions. The RBI also extended regulatory directions for Sri Guru Raghavendra Sahakara Bank Niyamitha in Bengaluru. On the operational and macroeconomic front, the RBI announced an underwriting auction for the sale of ₹32,000 crore in Government Securities scheduled for August 7, 2026, and detailed its money market operations and a 4-day Variable Rate Reverse Repo (VRRR) auction. The bank also published data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB), and Rupee Denominated Bonds (RDB) for June 2026, alongside the results of several forward-looking surveys, including consumer confidence and inflation expectations. The draft guidelines and directions remain open for stakeholder feedback and public comments.