RBI through a notification has issued a Prudential Guidelines on Capital Adequacy and Market Discipline – New Capital Adequacy Framework (NCAF) – Eligible Credit Rating Agencies – CRISIL Ratings Limited.
It is applicable to all Scheduled Commercial Banks (Excluding Payment Banks, Local Area Banks and Regional Rural Banks).
It has notified that CRISIL Limited has been accredited for the purpose of risk weighting the banks’ claims for capital adequacy purposes along with other credit rating agencies (CRAs) registered with Securities and Exchange Board of India (SEBI).
The rating business of CRISIL Limited has since been transferred to CRISIL Ratings Limited, a wholly owned subsidiary of CRISIL Limited in compliance with SEBI’s notification on 11th September, 2018.
Accordingly, banks may, use the ratings of the CRISIL Ratings Limited for the purpose of risk weighting their claims for capital adequacy purposes. The rating assigned by CRISIL Ratings Limited will be the same as was in the case of CRISIL Limited and there is no change in the rating symbols earlier assigned by CRISIL Limited.
However, all other provisions regarding external credit ratings stipulated in the aforementioned Master Circulars remain unchanged.