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

Digital Payments – E-mandate Framework 2026

Reserve Bank of India (RBI) has issued e-mandate framework for digital payments. What is an e-mandate?  A mandate is a standard instruction that a customer provides to his / her issuing bank and other institutions allowing them to automatically debit the mentioned amount from his / her bank account. e-mandate is the electronic version of it. To whom shall the framework be applicable? The framework shall be applicable to Payment System Providers and Payment System Participants. To which transactions shall the framework be applicable? The framework shall be applicable to processing of recurring transactions, domestic or cross-border, using cards / Prepaid Payment Instrument (PPI) / Unified Payments Interface (UPI). What are the guidelines for registration and revocation of e-mandate? A customer desirous of opting for e-mandate facility shall undertake a one-time registration process. The mandate shall be registered only after successful validation of additional factor of authenticati...
Post a Comment
Read more

Utkarsh 2029

Reserve Bank of India (RBI) has published its medium-term strategy framework – Utkarsh 2029, for the period April 2026 to March 2029. Utkarsh RBI had first formulated its medium-term strategy framework, viz. ‘Utkarsh 2022’ for the period 2019-2022 in July 2019, replacing its annual action plans as the latter spanned over a short period, insufficient to pursue strategic objectives.  The strategic framework contained, inter alia, RBI’s Mission, Core Purpose, Values and Vision Statements, reiterating RBI’s commitment to the Nation. It became a medium-term strategy document guiding RBI’s progress towards realisation of the identified milestones. The subsequent strategy framework, i.e., ‘Utkarsh 2.0’, spanned the period 2023-25. Utkarsh 2029  Utkarsh 2029 is the medium-term strategy framework for the period April 2026 to March 2029. Utkarsh 2029 has a 3-layered structure consisting of strategy pillars guided by the vision and values of RBI. Vision of Utkarsh 2029 – Continue excelle...
Post a Comment
Read more

Treatment of Wilful Defaulters and Large Defaulters

Reserve Bank of India (RBI) had issued the directions on treatment of wilful defaulters and large defaulters. To whom shall the directions be applicable? The directions shall be applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) Non-Banking Financial Companies (NBFCs) categorized as Middle Layer and above layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MF...
Post a Comment
Read more

Credit Information Reporting

Reserve Bank of India (RBI) had issued directions on credit information reporting by the regulated entities. What are Credit Information Companies (CICs)? Credit Information Companies (CICs) mean companies that have been granted a certificate of registration by RBI under section 5 of the Credit Information Companies (Regulations) Act, 2005 (CICRA).  The following CICs are registered with RBI – CRIF High Mark Credit Information Services Private Limited Equifax Credit Information Services Private Limited Experian Credit Information Company of India Private Limited TransUnion CIBIL Limited What are Credit Institutions (CIs)? Credit Institutions (CIs) mean the following institutions – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export I...
Post a Comment
Read more

Guidelines to facilitate faster cross-border inward payments

Reserve Bank of India (RBI) has issued guidelines to facilitate faster cross-border inward payments. What is the rationale behind the guidelines? The RBI’s Payments Vision 2025 aims to bring efficiency in the cross-border payments aligning with the G20 roadmap for cross-border payments that has set targets for achieving cheaper, faster, more transparent, and more accessible cross-border payments. One of the challenges with speed of cross-border payments is experienced at the beneficiary leg i.e., the time taken from receipt of the payment at the beneficiary bank till credit to the beneficiary account. What are the guidelines to facilitate faster cross-border inward payments? Banks shall inform their customer of the receipt of cross-border inward transactions immediately on receipt of inward message. Messages received after close of operating hours of banks shall be informed to customer immediately at the start of the next business day. Banks shall undertake reconciliation and confirmat...
1 comment
Read more