The Reserve Bank of India on Wednesday permitted banks to use ratings by Brickwork Ratings India Private Limited for loans of up to Rs 250 crore.
The RBI, in October 2022, asked banks and other regulated entities not to obtain any fresh ratings from Brickwork Ratings India.
The Certificate of Registration granted to Brickwork Ratings India as a Credit Rating Agency (CRA) was cancelled by market regulator Sebi in October 2022.
After a review of the October 2022 circular, the RBI on Wednesday permitted banks to use the ratings of the CRA for risk weighting their claims for capital adequacy purposes, subject to certain conditions.
"In respect of fresh rating mandates, the rating may be obtained from the CRA for bank loans not exceeding Rs 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," it said.
The Reserve Bank has also issued another circular, tweaking norms related to ...
