RBI (Reserve Bank of India) has now allowed banks to use ratings from Brickwork Ratings India Private Limited for loans up to Rs 250 crore.
This decision comes after the central bank had earlier directed banks and other regulated entities not to take new ratings from Brickwork Ratings India, back in October 2022. Around the same time, the capital market watchdog also canceled Brickwork Ratings India's registration as a Credit Rating Agency (CRA).
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.
Advertisement
"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 remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS).
On a review, RBI said it has been decided that "authorised persons" may facilitate remittances for all permissible purposes under LRS to IFSCs for availing financial services or financial products as per the International Financial Services Centres Authority Act, 2019, within IFSCs.
Advertisement
At present, remittances under LRS to IFSCs can be made only for making investments in IFSCs in securities except those issued by entities/ companies resident in India (outside IFSC), and payment of fees for education to foreign universities or foreign institutions in IFSCs for pursuing courses.
(With Inputs From PTI)
Just one email a week