The Reserve Bank of India (RBI) on July 10, 2024, notified regarding the Basel III Capital Regulations - Eligible Credit Rating Agencies (ECAI) with reference to paragraph 6.1.2 of the Master Circular DOR.CAP.REC.4/21.06.201/2024-25 dated April 1, 2024, on Basel III Capital Regulations, wherein the list of domestic credit rating agencies accredited for risk weighting banks' claims for capital adequacy purposes has been prescribed.
On a review, banks are hereby permitted to use the ratings of the CRA for risk weighting their claims for capital adequacy purposes, subject to the following:
• Regarding fresh rating mandates, a rating may be obtained from the CRA for bank loans not exceeding Rs.250 crores.
• Regarding existing ratings, the CRA may undertake rating surveillance irrespective of the rated amount, till the residual tenure of such loans.
Provided that in case of existing ratings assigned to working capital facilities exceeding Rs.250 crores, the CRA shall undertake rating surveillance only till the next renewal of such facility by the banks.
[Notification No. RBI/2024-25/50 DOR.STR.REC. 26/21.06.008/2024-25]
