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Credit rating agencies eligible for risk weighting banks’ claims

Reserve Bank of India (RBI) has revised the list of domestic credit rating agencies accredited for the purpose of risk weighting banks' claims for capital adequacy purposes.

What is Credit Rating Agency (CRA)?

A Credit Rating Agency (CRA) is a company that assigns credit ratings for a debtor's ability to pay back debt and the likelihood of default.

What is the list of credit rating agencies eligible for risk weighting banks’ claims?

Reserve Bank of India (RBI) has undertaken the detailed process of identifying the eligible credit rating agencies, whose ratings may be used by banks for assigning risk weights for credit risk. Where the facility provided by the bank possesses rating assigned by an eligible credit rating agency, the risk weight of the claim will be based on this rating. 

Banks may use the ratings of the following domestic credit rating agencies for the purposes of risk weighting their claims for capital adequacy purposes –

  1. Acuite Ratings & Research Limited (Acuite)
  2. Brickwork Ratings India Private Limited (BRIPL)
  3. Credit Analysis and Research Limited (CARE) Ratings Limited
  4. CRISIL Ratings Limited
  5. ICRA Limited
  6. India Ratings and Research Private Limited (India Ratings)
  7. INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)

Banks may use the ratings of the following international credit rating agencies for the purposes of risk weighting their claims for capital adequacy purposes where specified –

  1. Fitch
  2. Moody's
  3. Standard & Poor’s

What is the recent update in the guidelines?

Securities and Exchange Board of India (SEBI) had cancelled the Certificate of Registration (CoR) granted to BRIPL as a Credit Rating Agency (CRA), vide order dated October 6, 2022. 

In view of the above, Regulated Entities / Market Participants were advised that in respect of ratings / credit evaluations required in terms of any guidelines issued by RBI, no fresh ratings / evaluations shall be obtained from BRIPL. 

Banks were later permitted to use the ratings of BRIPL for risk weighting their claims for capital adequacy purposes, subject to the following –

  • In respect of fresh rating mandates, rating may be obtained from the CRA for bank loans not exceeding ₹250 crore.
  • In respect of existing ratings, the CRA may undertake rating surveillance irrespective of the rated amount, till the residual tenure of such loans.
  • In case of existing ratings assigned to working capital facilities exceeding ₹250 crore, the CRA shall undertake rating surveillance only till the next renewal of such facility by the banks.

(Updated on June 09, 2025)

The restrictions / limits placed on the use of ratings of BRIPL by the banks have been removed.


References

Reserve Bank of India. (2022, October 12). 'Cancellation of the CoR of Brickwork Ratings India Private Limited by SEBI'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54531

Reserve Bank of India. (2023, January 09). 'Basel III Capital Regulations - Eligible Credit Rating Agencies'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12435&Mode=0

Reserve Bank of India. (2024, July 10). 'Basel III Capital Regulations - Eligible Credit Rating Agencies (ECAI)'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12700&Mode=0

Reserve Bank of India. (2025, June 09). 'Basel III Capital Regulations - External Credit Assessment Institution (ECAI)'. Retrieved from https://website.rbi.org.in/web/rbi/-/notifications/basel-iii-capital-regulations-external-credit-assessment-institution-ecai-

Reserve Bank of India. (2025, April 01). 'Master Circular – Basel III Capital Regulations'. Retrieved from https://website.rbi.org.in/documents/87730/39710850/Master+Circular-Basel+III+Capital+Regulations_2025.pdf/2a2c63f6-4b43-d4c1-f49d-8a4850d8c0ef?t=1743495829304


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