Tata mulls merger of arm for exemption from RBI as NBFC upper layer tag

Tata Sons, the holding company of the Tata group, is studying the option to merge one of its 100 per cent operating subsidiaries with itself to get an exemption as the NBFC (non-banking finance company) upper layer tag from the Reserve Bank of India.

With the NBFC upper layer tag having been introduced in September 2022, legal sources said Tata Sons will have to submit audited financial data of each subsidiary and its step-down subsidiaries, taking the total to about 1,300 firms. "The NBFC upper layer tag opens up RBI scrutiny on every company and their subsidiaries spread all over