The Reserve Bank of India (RBI), through Notification RBI/2025-26/65 dated July 10, 2025, has amended its Basel III Capital Regulations. This notification permits all Scheduled Commercial Banks (excluding Local Area Banks, Payments Banks, and Regional Rural Banks) to utilize ratings from M/s CareEdge Global IFSC Limited for risk weighting their claims on non-resident corporates originating at International Financial Services Centres (IFSC). Previously, banks were allowed to use ratings from only three international credit rating agencies: Fitch, Moody’s, and Standard & Poor’s. The RBI has also provided a specific rating-risk weight mapping for CareEdge Global IFSC Limited: AAA (20% risk weight), AA (30%), A (50%), BBB (100%), and BB & below (150%). This decision expands the options available to banks for assessing credit risk in their international exposures, specifically within the IFSC framework.
Reserve Bank of India
RBI/2025-26/65
DOR.STR.REC.39/21.06.008/2025-26 Dated: July 10, 2025
All Scheduled Commercial Banks
(including Small Finance Banks)
(excluding Local Area Banks, Payments Banks and Regional Rural Banks)
Madam / Dear Sir,
Basel III Capital Regulations – External Credit Assessment Institutions (ECAIs) – CareEdge Global IFSC Limited
Please refer to Paragraph 6 of the Master Circular – Basel III Capital Regulations dated April 01, 2025, as amended from time to time.
2. In terms of para ibid, inter alia, banks are permitted to use the ratings of three international credit rating agencies viz. a) Fitch; b) Moody’s; and c) Standard & Poor’s for the purpose of risk weighting their claims on different foreign entities for capital adequacy purposes.
3. It has been decided to permit banks to also use the ratings of M/s CareEdge Global IFSC Limited for risk weighting their claims on non-resident corporates originating at International Financial Services Centre (IFSC).
4. The rating-risk weight mapping for the ratings assigned by M/s CareEdge Global IFSC Limited shall be as follows:
| Rating Category | AAA | AA | A | BBB | BB & below |
| Risk weight (%) | 20 | 30 | 50 | 100 | 150 |
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
