Skip to main content

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 on different foreign entities  for capital adequacy purposes where specified –

  1. Fitch
  2. Moody's
  3. Standard & Poor’s
(Updated on July 10, 2025)

Banks have been permitted to also use the ratings of M/s CareEdge Global IFSC Limited for risk weighting their claims on non-resident corporates originating at International Financial Services Centre (IFSC).

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, July 10). 'Basel III Capital Regulations – External Credit Assessment Institutions (ECAIs) – CareEdge Global IFSC Limited'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12880&Mode=0

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


Follow at - Telegram   Instagram   LinkedIn   Twitter

Labels:

Comments

Post a Comment

Popular Posts

Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) (Updated as on September 11, 2026)

Reserve Bank of India (RBI) has issued the directions on maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by banks. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Payments Banks (PBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) District Central Co-operative Banks (DCCBs) What is CRR? Every bank shall maintain in India by way of cash reserve, a sum equivalent to such percent of its Net Demand and Time Liabilities (NDTL) in India, as the RBI in terms of Section 42(1) of the RBI Act, 1934 (for scheduled banks) and Section 18(1) of the Banking Regulation Act (BR Act), 1949 (for non-scheduled banks) [including provisions of Section 18(1) of the BR Act as applicable to co-operative banks], may specify. What is incremental CRR? In terms of Secti...
Post a Comment
Read more

Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)

Reserve Bank of India (RBI) has issued guidelines on credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs). What are the guidelines on credit facilities to SCs & STs? District Level Consultative Committees formed under the Lead Bank Scheme should continue to be the principal mechanism of co-ordination between banks and development agencies.  National Scheduled Tribes Finance & Development Corporation and National Scheduled Castes Finance & Development Corporation have been set up under the administrative control of Ministry of Tribal Affairs and Ministry of Social Justice & Empowerment, respectively. Banks should advise their branches / controlling offices to render all the necessary institutional support to enable these institutions to achieve the desired objectives. Loans sanctioned to State Sponsored Organisations for Scheduled Castes / Scheduled Tribes for the specific purpose of purchase and supply of inputs and / or the marketing of the out...
Post a Comment
Read more

What is Ways and Means Advances (WMA)? (Updated as on September 25, 2026)

Reserve Bank of India (RBI) has recently announced the Ways and Means Advances (WMA) limit for the Government of India. So, what is WMA? What is Ways and Means Advances (WMA)? Ways and Means Advances (WMA) is a collateral free clean advance availed by the Central and State Governments from RBI, to tide over temporary mismatches in the receipts and payments. Section 17(5) of the Reserve Bank of India Act, 1934 empowers RBI to grant WMA to Central and State Governments, as and when required by them. What is Special WMA / Special Drawing Facility (SDF)? In addition to WMA, State Governments are also eligible for a Special Drawing Facility (SDF), which is granted against collateral of Government Securities held by the State Governments.  SDF availed by State Governments / UTs is linked to the quantum of their investments in marketable securities issued by the Government of India, including Auction Treasury Bills (ATBs).  (Updated as on June 28, 2024) Based on the recommendations m...
Post a Comment
Read more

Regulatory Measures for the Foreign Exchange Market

Reserve Bank of India (RBI) has announced regulatory measures for the foreign exchange market. Cancellation and rebooking / rollovers of foreign exchange derivative contracts An Authorised Dealer shall not permit users to rebook any foreign exchange derivative contract involving the INR, whether deliverable or non-deliverable, which has been cancelled with any of the Authorised Dealers. An Authorised Dealer may, however, continue to permit users to rollover foreign exchange derivative contracts on maturity, subject to compliance with the extant directions. Threshold limit for taking positions without requirement to establish the existence of underlying Authorised Dealers were permitted to allow users to take positions upto USD 100 million equivalent of notional value (outstanding at any point of time), across all Authorised Dealers, for hedging contracted exposure without the requirement to establish the existence of underlying exposure.  Further, a user was allowed to take positio...
Post a Comment
Read more

Framework for Self-Regulatory Organisations in the FinTech Sector (Updated on September 10, 2026)

Reserve Bank of India (RBI) has released the framework for self-regulatory organisations in the FinTech sector. What are FinTechs? For the purpose of membership of an Self-Regulatory Organisations for FinTech Sector (SRO-FT), FinTechs may be defined as entities that provide technological solutions for delivery of financial products and services to businesses and consumers or encompass regulatory and supervisory compliance in partnership with traditional financial institutions or otherwise.  What is the need of Self-Regulatory Organisations for FinTech Sector? FinTechs play a pivotal role in redefining financial services by saving time, enhancing access, and lowering costs. While the FinTechs bring various innovations, the FinTech sector also raises concerns relating to customer protection, data privacy, cyber security, grievance handling, internal governance, financial system integrity, etc. A judicious balance between maximising the creative potential of FinTechs, while minimising...
Post a Comment
Read more