Home › Circulars › RBI/2022-23/37

NBFC Deposit Rating Floor Lowered to BBB-

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/37 · issued 02 May 2022 · ~1 min read

Quick answerRBI has reduced the minimum credit rating for NBFCs to accept public deposits from any SEBI-registered agency to 'BBB-'. This eases the rating requirement, potentially allowing more NBFCs to raise deposits.

What changed

The minimum investment grade credit rating for NBFCs accepting public deposits has been revised to 'BBB-' from any SEBI-registered credit rating agency. This replaces the earlier rating requirements listed in the 2016 Master Direction.

What it means for you

NBFCs and deposit-taking HFCs now have a lower bar to meet for accepting public deposits, which could expand their funding options. Lenders and depositors should note that 'BBB-' is the lowest investment grade, indicating moderate credit risk.

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

Update internal policies to reflect the new minimum rating of 'BBB-' for NBFC deposit acceptance.
Review your NBFC's current credit rating and ensure it meets or exceeds 'BBB-' from a SEBI-registered agency.
Communicate the revised rating requirement to deposit operations and compliance teams.
Monitor any further RBI modifications to the Master Direction on NBFC deposits.

Who it affects

All deposit-taking NBFCs, Deposit-taking HFCs, SEBI-registered credit rating agencies, Depositors and investors in NBFC deposits

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 06:18 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Status change: withdrawn 03 Aug 2026, 04:00 IST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).

What is the new minimum credit rating for NBFC deposits?

The minimum investment grade credit rating is now 'BBB-' from any SEBI-registered credit rating agency.

Does this apply to all NBFCs?

Yes, it applies to all deposit-taking NBFCs, including deposit-taking housing finance companies (HFCs).

When did this change take effect?

The notification was issued on May 2, 2022, and is effective from that date.

📜 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 #243: DOR.FIN.REC.No.30/03.10.001/2022-23 — "Review of Minimum Investment Grade Credit Ratings for Deposits of NBFCs" dated May 2, 2022”

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

RBI/2022-23/37
 DOR.FIN.REC.No.30/03.10.001/2022-23
 May 02, 2022
 All Deposit taking NBFCs (including deposit taking HFCs)
 Dear Sir/ Madam,
 Review of Minimum Investment Grade Credit Ratings for Deposits of NBFCs
 Please refer to para 9 of Master Direction – Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 wherein the names of approved credit rating agencies and their respective minimum investment grade credit rating for the purpose of accepting public deposits by NBFCs have been listed.
 2. On a review, it has been decided that the minimum investment grade credit rating for deposits of NBFCs shall be ‘BBB–’ from any of the SEBI-registered Credit Rating Agencies.
 3. The Master Direction – Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 is being modified accordingly.
 Yours faithfully,
 (J.P. Sharma)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/37 · issued 02 May 2022. 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=12304&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.