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HFC Deposit Ratings Aligned with NBFC Norms

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2021-22/74 · issued 29 Jul 2021 · ~1 min read

Quick answerRBI has aligned HFC deposit rating requirements with NBFC rules, updating approved credit rating agencies and minimum investment grade ratings. HFCs must now use the revised list to accept public deposits.

What changed

RBI revised the list of approved credit rating agencies and their minimum investment grade ratings for HFCs accepting public deposits, aligning them with NBFC norms. Two new agencies—Acuite Ratings & Research and Infomerics Valuation and Rating—were added, and Brickwork's rating changed from BWR FA to BWR FBBB.

What it means for you

HFCs must now follow the same deposit rating framework as NBFCs, ensuring consistency across the non-banking sector. This may require HFCs to update their deposit acceptance policies and re-evaluate existing rating agreements to comply with the new minimum ratings.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review the updated list of approved credit rating agencies and their minimum investment grade ratings for public deposits.
Ensure any new public deposit acceptance uses ratings from the revised list, including new agencies like Acuite and Infomerics.
Update internal policies and documentation to reflect the alignment with NBFC deposit rating norms.

Who it affects

All deposit-taking Housing Finance Companies (HFCs), Credit rating agencies listed in the annex, Depositors of HFCs

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 07:46 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why did RBI align HFC deposit ratings with NBFC norms?

To bring consistency in regulatory treatment across non-banking financial entities, ensuring HFCs follow the same deposit rating framework as NBFCs.

Which new credit rating agencies were added?

Acuite Ratings & Research Limited and Infomerics Valuation and Rating Private Limited were added, along with their respective minimum investment grade ratings.

What is the new minimum rating for Brickwork?

Brickwork's minimum investment grade rating for HFC deposits changed from BWR FA to BWR FBBB, aligning with NBFC requirements.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #294: DOR.FIN.REC.No.34/03.10.136/2021-22 — "Rating of Deposits of HFCs - Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating" dated July 29, ”

📜 Read the original circular — full text as issued by RBI

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
 Annex
 List of Credit Rating Agencies and their respective minimum investment grade ratings
 Sl. No.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/74 · issued 29 Jul 2021. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12134&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.