RBI/2016-17/321
DBR.No.BP.BC.74/21.06.009/2016-17
June 13, 2017
The Chairman / CMD / MD / CEO
All Scheduled Commercial Banks
(Excluding Local Area Banks and Regional Rural Banks)
Madam/Dear Sir,
Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital
Adequacy Framework (NCAF) – Eligible Credit Rating Agencies – INFOMERICS
Valuation and Rating Pvt Ltd. (INFOMERICS)
Please refer to the Master Circular DBR.No.BP.BC.4./21.06.001/2015-16 dated July 1, 2015 on ‘Prudential Guidelines on Capital Adequacy and Market Discipline – New Capital Adequacy Framework (NCAF)’.
2. In terms of para 6 of the circular, six domestic credit rating agencies viz. CARE, CRISIL, FITCH India, ICRA, Brickwork Ratings and SMERA have been accredited for the purpose of risk weighting the banks’ claims for capital adequacy purposes. The long term and short term ratings issued by these domestic credit rating agencies have been mapped to the appropriate risk weights applicable as per the Standardised Approach under the Basel II Framework.
3. It has been decided that banks may also use the ratings of the INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS) for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing six domestic credit rating agencies. The rating-risk weight mapping for the long term and short term ratings assigned by INFOMERICS will be the same as in case of other rating agencies.
Yours faithfully,
(S. S. Barik)
Chief General Manager-in-Charge