What changed
RBI revised para 6 of its Master Circular on Prudential Guidelines on Capital Adequacy and Market Discipline (NCAF) to replace the name 'Fitch India' with 'India Ratings and Research Private Limited (India Ratings)'. The change follows SEBI's registration of the new entity on May 20, 2012, after Fitch's Indian operations split into domestic and international units. The revised rating symbols for long-term and short-term debt instruments are now prefixed with 'IND' instead of 'Fitch'.
What it means for you
Banks can continue using credit ratings from this agency for risk-weighting claims under the NCAF, but must now refer to the new name and updated rating symbols. The change is purely administrative—no other provisions of the master circular are affected. Lenders should update their internal systems and documentation to reflect the new rating labels.
What you must do
- Update your approved CRA list to replace 'Fitch India' with 'India Ratings and Research Private Limited (India Ratings)'.
- Revise internal risk-weighting templates and capital adequacy calculations to use the new rating symbols (e.g., IND AAA instead of Fitch AAA).
- Inform relevant credit and risk teams about the name change to avoid confusion in loan documentation and reporting.
- Ensure any outstanding references to Fitch India in policies or circulars are updated to the new name.
Who it affects
All scheduled commercial banks (excluding LABs and RRBs), Credit risk management teams, Capital adequacy reporting units
Why did RBI change the name from Fitch India to India Ratings?
Fitch Ratings split its Indian operations into domestic and international units. The domestic rating arm was renamed India Ratings and Research Private Limited, and SEBI issued a new registration certificate on May 20, 2012. RBI updated its circular to reflect this change.
Do the rating symbols change for capital adequacy purposes?
Yes. The revised rating symbols now use the prefix 'IND' instead of 'Fitch' (e.g., IND AAA instead of Fitch AAA). The underlying rating scales remain the same.
Are any other provisions of the NCAF master circular affected?
No. All other provisions regarding external credit ratings remain unchanged. Only the name and rating symbols of this specific CRA have been updated.