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RBI FAQs restate 90 percent CIC rule after Tata Sons
Business Standard··18 Sept
Days after rejecting Tata Sons' bid to leave the CIC category, the RBI issued NBFC FAQs on CIC rules, principal business and public funds. A CIC keeps at least 90 percent of net assets in group investments and holds assets of at least Rs 100 crore. RBI listed Tata Sons as upper-layer in September 2022 with a three-year listing deadline.
Prism
What It Means For You
- Tata Sons remains treated as an upper-layer NBFC CIC after the deregistration bid was refused.
- The FAQs say public funds include bank finance, commercial paper, debentures and inter-corporate deposits.
- Indirect public funds can arrive through associates that raise such money, the RBI clarified.
What's Happening
- RBI told Tata Sons its voluntary surrender application cannot be acceded to.
- Tata Sons applied in 2024 to surrender its CIC registration after becoming debt-free.
- In August 2026 the RBI again listed Tata Sons among upper-layer NBFCs.
The 50-50 NBFC Test
- More than 50 percent of assets and gross income must come from financial assets to require NBFC registration.
- CICs and other non-deposit-taking NBFCs may not accept public deposits, the FAQs restate.
- Business Standard said the definitions help explain why the listing path stayed in force.
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