The Reserve Bank of India (RBI) has given its approval for the merger of Aditya Birla Finance Ltd (ABFL), a wholly-owned subsidiary, with its parent company, Aditya Birla Capital Ltd (ABCL). This step is significant as it creates a larger, unified non-banking financial company (NBFC). ABFL, an upper layer NBFC, falls under RBI's scale-based regulations requiring stock exchange listing. The merger is expected to boost capital adequacy by 150 basis points and reduce leverage to 4.15%. The company will now seek approval from the National Company Law Tribunal (NCLT) to finalize the process.