RBI permit banks to use ratings of Brickwork Ratings India

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Mumbai, Jul 10 (PTI) 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 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.

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. PTI NKD NKD BAL BAL