**Summary:**
RBI20252665 DOR.STR.REC.3921.06.008202526 issued on July 10, 2025, by the Reserve Bank of India (RBI) to All Scheduled Commercial Banks (including Small Finance Banks, excluding Local Area Banks, Payments Banks, and Regional Rural Banks), modifies the Basel III Capital Regulations concerning External Credit Assessment Institutions (ECAIs). The circular, referencing the Master Circular Basel III Capital Regulations dated April 01, 2025, now permits banks to use the ratings of Ms CareEdge Global IFSC Limited, in addition to Fitch, Moody's, and Standard & Poor's, for risk weighting claims on non-resident corporates originating at International Financial Services Centres (IFSC). The rating-risk weight mapping for CareEdge Global IFSC Limited is as follows: AAA (20%), AA (30%), A (50%), BBB (100%), BB and below (150%). Vaibhav Chaturvedi, Chief General Manager, is the contact person for this circular.
Key Entities Referenced
Basel III Capital Regulations: A set of international regulatory accords that recommend banks to maintain minimum capital requirements.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
Small Finance Banks: A type of bank in India licensed by the Reserve Bank of India with the objective of further financial inclusion.
CareEdge Global IFSC Limited: A credit rating agency operating in the International Financial Services Centre (IFSC).
Fitch: An international credit rating agency.
Moody's: An international credit rating agency.
Standard & Poor's: An international credit rating agency.
Vaibhav Chaturvedi: Chief General Manager at Reserve Bank of India.
RBI/2025-26/65
DOR.STR.REC.39/21.06.008/2025-26 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