The Reserve Bank of India (RBI) issued a circular on June 9, 2025, addressing Basel III Capital Regulations concerning External Credit Assessment Institutions (ECAI). This circular, directed to all Scheduled Commercial Banks (excluding Local Area Banks, Payments Banks, and Regional Rural Banks), refers to previous guidelines on risk weighting banks’ claims for capital adequacy. Specifically, it notes a prior circular from July 10, 2024, which permitted banks to use ratings from Brickwork Ratings India Private Limited (BRIPL) with certain restrictions. Upon review, the RBI has decided to remove these restrictions and limits on the use of BRIPL ratings. All other provisions related to external credit ratings, as stipulated in the Master Circular on Basel III Capital Regulations, remain unchanged.
Reserve Bank of India
RBI/2025-26/50
DOR.STR.REC.29/21.06.008/2025-26 | Dated: June 09, 2025
All Scheduled Commercial Banks
(including Small Finance Banks)
(excluding Local Area Banks, Payments Banks and Regional Rural Banks)
Dear Sir/ Madam,
Basel III Capital Regulations – External Credit Assessment Institution (ECAI)
Please refer to paragraph 6.1.2 of the Master Circular No. DOR.CAP.REC.2/21.06.201/2025-26 dated April 1, 2025 on Basel III Capital Regulations, wherein the list of domestic credit rating agencies accredited for the purpose of risk weighting banks’ claims for capital adequacy purposes has been prescribed.
2. A reference is also invited to the circular DOR.STR.REC.26/21.06.008/2024-25 dated July 10, 2024 in terms of which, banks were permitted to use the ratings of Brickwork Ratings India Private Limited (BRIPL) for risk weighting their claims for capital adequacy purposes subject to the restrictions/limits specified therein.
3. On a review, it has been decided to remove the restrictions/ limits placed on the use of ratings of BRIPL by the banks.
4. All other provisions regarding external credit ratings stipulated in the Master Circular ibid remain unchanged.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
