What changed
RBI amended the Non-Banking Financial Companies Acceptance of Public Deposits Directions, 1998 to include Brickwork Ratings India Pvt. Ltd. as an eligible credit rating agency. The minimum investment grade rating for fixed deposits from Brickwork is set at BWR F A. This addition is effective immediately from May 11, 2012.
What it means for you
NBFCs now have an additional option for rating their fixed deposit portfolios, which may increase competition among rating agencies and potentially reduce costs. Lenders must ensure that any fixed deposits rated by Brickwork meet the minimum BWR F A grade to comply with regulatory requirements.
What you must do
- Update internal compliance checklists to include Brickwork Ratings as an approved agency for fixed deposit ratings.
- Ensure that any fixed deposit rating obtained from Brickwork meets the minimum investment grade of BWR F A.
- Review existing fixed deposit portfolios to confirm all ratings are from approved agencies and meet minimum grade thresholds.
- Communicate this change to relevant teams handling public deposit acceptance and compliance.
Who it affects
All Non-Banking Financial Companies (except Residuary Non-Banking Companies and Miscellaneous Non-Banking Companies), Credit rating agencies operating in India, NBFC depositors and investors
What is the minimum rating required for fixed deposits rated by Brickwork?
The minimum investment grade rating for fixed deposits rated by Brickwork Ratings India Pvt. Ltd. is BWR F A.
Does this change affect existing fixed deposit ratings from other agencies?
No, this only adds Brickwork as an additional approved agency. Ratings from previously approved agencies remain valid as per the existing directions.