RBI Update - Basel III Capital Regulations – External Credit Assessment Institutions (ECAIs) – CareEdge Global IFSC Limited (Applicable- All Scheduled Commercial Banks (including Small Finance Banks) (excluding Local Area Banks, Payments Banks and Regional Rural Banks))

Please find the following update under RBI

It states the following In terms of Paragraph 6 of the Master Circular Basel III Capital Regulations dated April 01, 2025, banks are permitted to use the ratings of Fitch, Moody's, and Standard & Poor’s for assigning risk weights to claims on foreign entities for capital adequacy purposes. Additionally, the Reserve Bank of India has decided to permit banks to use the ratings of M/s CareEdge Global IFSC Limited for risk-weighting their claims on non-resident corporates originating at the International Financial Services Centre (IFSC). The applicable rating-risk weight mapping for CareEdge Global IFSC Limited is as follows: AAA – 20%, AA – 30%, A – 50%, BBB – 100%, and BB & below – 150%.

Link - View Circular