Reserve Bank of India vide its Circular dated 9th January, 2023 has referred to paragraph 6.1.2 of the Master Circular DOR.CAP.REC.3/21.06.201/2022-23 dated April 01, 2022 on Basel III Capital Regulations, wherein the list of domestic credit rating agencies accredited for the purpose of risk weighting banks’ claims for capital adequacy purposes had been prescribed.
Further, Banks have been advised to use the ratings of the following domestic credit rating agencies (arranged in alphabetical order) for risk weighting their claims for capital adequacy purposes:
- Acuite Ratings & Research Limited (Acuite)
- Credit Analysis and Research Limited (CARE);
- CRISIL Ratings Limited;
- ICRA Limited;
- India Ratings and Research Private Limited (India Ratings); and
- INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)
Further, Regulated Entities/ Market Participants are advised that in respect of ratings/credit evaluations required in terms of any guidelines issued by the Reserve Bank, no such fresh ratings/evaluations shall be obtained from Brickwork Ratings India Private Limited (Refer: Press Release: 2022-2023/1033 dated October 12, 2022). All other provisions regarding external credit ratings stipulated in the Master Circular shall remain unchanged.
This Circular is applicable to all Scheduled Commercial Banks (including Small Finance Banks and excluding Local Area Banks, Payments Banks and Regional Rural Banks) and shall come into force with immediate effect.
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