Home India Reserve Bank of India Rating of Deposits of HFCs – Approved Credit Rating Agencies...
Date: 2021-07-29 Category: Not Applicable State: Union Government Country: India

Rating of Deposits of HFCs – Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating

Issued by Reserve Bank of India · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

**Summary:** This Reserve Bank of India (RBI) circular, RBI20212274 DOR.FIN.REC.No.3403.10.136202122 dated July 29, 2021, addresses all deposit-taking Housing Finance Companies (HFCs). The circular revises the list of approved credit rating agencies and their minimum investment grade credit ratings required for HFCs to accept public deposits. This revision aligns the regulations for HFCs with those already in place for Non-Banking Financial Companies (NBFCs), as outlined in Para 9 of Master Direction Non-Banking Financial Companies Acceptance of Public Deposits Reserve Bank Directions, 2016. The Master Direction Non-Banking Financial Company Housing Finance Company Reserve Bank Directions, 2021 is being modified to reflect these changes. The updated list of approved credit rating agencies and their corresponding minimum investment grade ratings are as follows: 1. The Credit Rating Information Services of India Limited (CRISIL): FA- 2. ICRA Limited: MA- 3. Credit Analysis & Research Limited (CARE): CARE BBB FD 4. Fitch Ratings India Private Limited: ind A FD 5. Brickwork Ratings India Private Limited: BWR FBBB 6. Acuite Ratings & Research Limited: ACUITE A 7. Infomerics Valuation and Rating Private Limited: IVR BBB The circular is issued by J.P. Sharma, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, 2nd Floor, Main Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001. Contact information includes telephone number 912222709038 and email address helpdnbrrbi.org.in. Specifically, Brickwork Ratings India Private Limited's rating changed from BWR FA to BWR FBBB for deposits of HFCs, to align with NBFCs. New credit rating agencies along with ratings for deposits of HFCs, to align with NBFCs.

Key Entities Referenced

Housing Finance Companies: Deposit taking Housing Finance Companies (HFCs) regulated by the Reserve Bank of India. Reserve Bank of India: The central bank of India, responsible for regulating the financial system. Master Direction Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021: A regulatory document issued by the Reserve Bank of India pertaining to Housing Finance Companies. Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016: A regulatory document issued by the Reserve Bank of India pertaining to Non-Banking Financial Companies accepting public deposits. Mumbai, Maharashtra: City in India, location of the Central Office of the Department of Regulation of the Reserve Bank of India. The Credit Rating Information Services of India Limited: Approved Credit Rating Agency. ICRA Limited: Approved Credit Rating Agency. Credit Analysis Research Limited: Approved Credit Rating Agency.
Official Source Record View Original Source →
See Full Document Text
RBI/2021-22/74 DOR.FIN.REC.No.34/03.10.136/2021-22 July 29, 2021 All deposit taking Housing Finance Companies (HFCs) Madam/ Dear Sir, Rating of Deposits of HFCs – Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating A reference is invited to Para 25.2 of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021, wherein the names of five approved credit rating agencies and their minimum investment grade credit rating for the purpose of accepting public deposits have been listed. 2. On a review, it has been decided to align the aforesaid provisions for HFCs with provisions on the subject prescribed for NBFCs which are contained in Para 9 of Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016. Accordingly, the names of credit rating agencies and their minimum investment grade ratings for the purpose of accepting public deposits by HFCs are listed in the Annex. 3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified accordingly. Yours faithfully, (J.P. Sharma) Chief General Manager िविनयमन िवभाग, क���य कायार्लय, 2री मंिजल, मुख्य कायार्लय भवन, शहीद भगत �संह माग र् फोटर्, मुंबई - 400 001 दरू ध्वनी:+91-22-22709038, ई-मेल:helpdnbr@rbi.org.in Department of Regulation, Central Office, 2nd Floor, Main Office Building , Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001 Tel No:+91-22-22709038, Email: helpdnbr@rbi.org.in �हदं ी आसान ह,ै इसका �योग बढाईय ेAnnex List of Credit Rating Agencies and their respective minimum investment grade ratings Sl. Name of the rating agency Minimum investment No. grade credit rating 1 The Credit Rating Information Services of India FA– (FA Minus) Limited (CRISIL) 2 ICRA Limited MA– (MA Minus) 3 Credit Analysis & Research Limited (CARE) CARE BBB (FD) 4 Fitch Ratings India Private Limited tA– (ind)(FD) 5 Brickwork Ratings India Private Limited BWR FBBB (Brickwork) * 6 Acuite Ratings & Research Limited ** ACUITE A 7 Infomerics Valuation and Rating Private Limited IVR BBB (IVRPL) ** * Rating changed from BWR FA to BWR FBBB for deposits of HFCs, to align with NBFCs. ** New credit rating agencies along with ratings for deposits of HFCs, to align with NBFCs. ***** िविनयमन िवभाग, क���य कायार्लय, 2री मंिजल, मुख्य कायार्लय भवन, शहीद भगत �संह माग र् फोटर्, मुंबई - 400 001 दरू ध्वनी:+91-22-22709038, ई-मेल:helpdnbr@rbi.org.in Department of Regulation, Central Office, 2nd Floor, Main Office Building , Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001 Tel No:+91-22-22709038, Email: helpdnbr@rbi.org.in �हदं ी आसान ह,ै इसका �योग बढाईय े

Continue your research