RBI Lifts Curbs on Brickwork Ratings Usage by Banks

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  • Last Updated on 11 June, 2025

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RBI removes BRIPL rating restrictions

Circular No. RBI/2025-26/50 DOR.STR.REC.29/21.06.008/2025-26; Dated: 09.06.2025

The Reserve Bank of India (RBI) has announced the removal of restrictions previously imposed on banks regarding the use of ratings assigned by Brickwork Ratings India Private Limited (BRIPL) for capital adequacy purposes.

1. Background – Earlier Regulatory Restrictions

Previously, RBI had permitted banks to use BRIPL-assigned credit ratings to risk-weight their claims under the capital adequacy framework, but subject to certain conditions:

  • Fresh rating mandates – Credit Rating Agencies (CRAs) could assign ratings only for bank loans up to ₹250 crore.
  • Existing ratings – Surveillance of ratings already assigned was allowed, regardless of the loan size, for the remaining tenure of such loans.

2. RBI’s Latest Decision

In a move to ease regulatory constraints, the RBI has now decided to withdraw these restrictions. As a result:

  • Banks can freely use ratings assigned by BRIPL for risk-weighting their exposures, without the ₹250 crore cap.
  • The earlier distinction between fresh mandates and existing ratings no longer applies.

3. Implication for Banks and BRIPL

This relaxation:

  • Restores full recognition to BRIPL as an eligible CRA for capital adequacy purposes
  • Expands banks’ options for obtaining risk assessments across a wider range of credit exposures
  • Encourages greater competition and transparency in the credit rating ecosystem
Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied