RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
The Reserve Bank of India (RBI) has amended its Basel III Capital Regulations to broaden the credit rating agencies banks can use for assessing risk weights on claims involving non-resident corporates located in International Financial Services Centres (IFSCs).
Key Highlights:
- New Rating Agency Permitted:
- Scheduled Commercial Banks (excluding Local Area Banks, Payments Banks, and Regional Rural Banks) can now use CareEdge Global IFSC Ltd ratings for credit risk assessment.
- Previous Status:
- Banks were limited to using international ratings from Fitch, Moody’s, and Standard & Poor’s.
- Purpose of Amendment:
- To enhance credit risk assessment options under the Basel III standardized approach for banks with international exposures, particularly in IFSCs.
- RBI-Specified Risk Weight Mapping for CareEdge Global IFSC Ltd:
- AAA – 20%
- AA – 30%
- A – 50%
- BBB – 100%
- BB & below – 150%
