Tata Sons seeks NBFC license surrender while RBI withholds approval
Business
Tata Sons wants to give up its nonbank financial company (NBFC) license, but the Reserve Bank of India (RBI) hasn't approved it yet.
The RBI made it clear that just applying doesn't mean an automatic yes, so for now, Tata Sons still has to follow all the strict NBFC rules, including mandatory listing requirements.
RBI cites indirect access, issues guidelines
The RBI is being cautious because even though Tata Sons paid off its direct debts in 2024, it might still have indirect access to public money through companies like Tata Motors and Tata Steel.
The RBI also released new NBFC guidelines in late June, effective July 1, and says its definition of public funds isn't changing anytime soon.