RBI Update – Basel III Capital Regulations – External Credit Assessment Institution (ECAI) (Applicable- All Scheduled Commercial Banks (including Small Finance Banks) (excluding Local Area Banks, Payments Banks and Regional Rural Banks))

RBI has issued a notification regarding Basel III Capital Regulations – External Credit Assessment Institution (ECAI)

The following has been stated in 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 has been prescribed.

Banks were permitted to use the ratings of Brickwork Ratings India Private Limited (BRIPL) for risk weighting their claims for capital adequacy purposes, subject to the restrictions/limits specified therein.

It has been decided to remove the restrictions/ limits placed on the use of ratings of BRIPL by the banks.

Link –https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12863&Mode=0