Mumbai: The Reserve Bank of India on Wednesday allowed banks to use the ratings of Brickwork Ratings India Pvt Ltd for loans up to Rs 250 crore.
RBI asked banks and other regulated entities not to obtain any new ratings from Brickwork Ratings India in October 2022.
The certificate of registration granted to Brickwork Ratings India as a credit rating agency (CRA) was canceled by market regulator SEBI in October 2022.
Following a review of the October 2022 circular, the RBI on Wednesday allowed banks to use CRAs' ratings for risk weighting of their claims for capital adequacy purposes, subject to certain conditions.
"In respect of new rating mandates, ratings may be obtained from CRA for bank loans not exceeding Rs 250 crore. In respect of existing ratings, CRA will continue to monitor the ratings irrespective of the rated amount till the remaining tenure of such loans. Can do." " It said.
The Reserve Bank has also issued another circular changing the norms relating to remittances to International Financial Services Centers (IFSCs) under the Liberalized Remittance Scheme (LRS).
In a review, the RBI said it has been decided that an "authorised person" shall be an IFSC for all permissible purposes under the LRS for availing financial services or financial products in accordance with the International Financial Services Centers Authorization Act, 2019. Can provide remittance facility.
At present, remittances to IFSC under LRS can be made only for investments in IFSC except securities issued by entities/companies resident in India (outside IFSC), and payment of fees for education in foreign universities or foreign institutions. Payment can be made in IFSC. Syllabus.
RBI asked banks and other regulated entities not to obtain any new ratings from Brickwork Ratings India in October 2022.
The certificate of registration granted to Brickwork Ratings India as a credit rating agency (CRA) was canceled by market regulator SEBI in October 2022.
Following a review of the October 2022 circular, the RBI on Wednesday allowed banks to use CRAs' ratings for risk weighting of their claims for capital adequacy purposes, subject to certain conditions.
"In respect of new rating mandates, ratings may be obtained from CRA for bank loans not exceeding Rs 250 crore. In respect of existing ratings, CRA will continue to monitor the ratings irrespective of the rated amount till the remaining tenure of such loans. Can do." " It said.
The Reserve Bank has also issued another circular changing the norms relating to remittances to International Financial Services Centers (IFSCs) under the Liberalized Remittance Scheme (LRS).
In a review, the RBI said it has been decided that an "authorised person" shall be an IFSC for all permissible purposes under the LRS for availing financial services or financial products in accordance with the International Financial Services Centers Authorization Act, 2019. Can provide remittance facility.
At present, remittances to IFSC under LRS can be made only for investments in IFSC except securities issued by entities/companies resident in India (outside IFSC), and payment of fees for education in foreign universities or foreign institutions. Payment can be made in IFSC. Syllabus.
