Brickwork Ratings Reinstated for Capital Adequacy with Caps
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/50 · issued 10 Jul 2024 · ~2 min read
Quick answerRBI has partially lifted the ban on Brickwork Ratings India for risk-weighting bank claims. Banks can now use its ratings for capital adequacy, but fresh mandates are capped at Rs.250 crore per loan. Existing ratings can continue surveillance regardless of amount.
What changed
Previously, banks were barred from obtaining fresh ratings from Brickwork Ratings India for any regulatory purpose. Now, RBI has permitted its use for capital adequacy risk-weighting, subject to a Rs.250 crore cap on fresh rating mandates. Existing ratings can be monitored for the full loan tenure, but working capital facilities above Rs.250 crore only until next renewal.
What it means for you
Banks can now leverage Brickwork Ratings for capital adequacy calculations, potentially easing concentration risk among other CRAs. The Rs.250 crore cap limits exposure to smaller loans, so large exposures still need other accredited agencies. Existing loan portfolios with Brickwork ratings remain valid, reducing immediate disruption.
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 allow Brickwork Ratings for fresh loan ratings up to Rs.250 crore for capital adequacy purposes.
Ensure existing Brickwork-rated loans above Rs.250 crore (especially working capital) have surveillance only until next renewal.
Communicate with credit teams to align risk-weighting processes with this partial reinstatement.
Monitor RBI circulars for any further changes to the list of eligible credit rating agencies.
Who it affects
All Scheduled Commercial Banks including Small Finance Banks, Credit risk and capital adequacy teams, Loan origination and portfolio management departments
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 03:06 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can we use Brickwork Ratings for any loan amount now?
No. For fresh mandates, the loan amount must not exceed Rs.250 crore. Existing ratings can continue surveillance regardless of amount, but working capital above Rs.250 crore only until next renewal.
Does this apply to all regulatory purposes or just capital adequacy?
This circular specifically permits use for risk-weighting claims for capital adequacy. Other regulatory requirements remain subject to the earlier ban unless separately clarified.
What about loans already rated by Brickwork before the ban?
Existing ratings can continue surveillance for the full residual tenure. For working capital facilities above Rs.250 crore, surveillance is allowed only until the next renewal by the bank.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #112: DOR.STR.REC.26/21.06.008/2024-25 — "Basel III Capital Regulations - Eligible Credit Rating Agencies (ECAI)" dated July 10, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/50
DOR.STR.REC.26/21.06.008/2024-25
July 10, 2024
All Scheduled Commercial Banks
(including Small Finance Banks)
(excluding Local Area Banks, Payments Banks and Regional Rural Banks)
Dear Sir / Madam,
Basel III Capital Regulations - Eligible Credit Rating Agencies (ECAI)
Please refer to paragraph 6.1.2 of the Master Circular DOR.CAP.REC.4/21.06.201/2024-25 dated April 1, 2024 on Basel III Capital Regulations , wherein the list of domestic credit rating agencies accredited for the purpose of risk weighting banks' claims for capital adequacy purposes has been prescribed.
2. A reference is also invited to the Press Release: 2022-2023/1033 dated October 12, 2022 in terms of which, regulated entities/market participants were advised that in respect of ratings/credit evaluations required in terms of any guidelines issued by the Reserve Bank, no such fresh ratings/evaluations shall be obtained from Brickwork Ratings India Private Limited (the CRA).
3. On a review, banks are hereby permitted to use the ratings of the CRA for risk weighting their claims for capital adequacy purposes, subject to the following:
In respect of fresh rating mandates, rating may be obtained from the CRA for bank loans not exceeding Rs.250 crore.
In respect of existing ratings, the CRA may undertake rating surveillance irrespective of the rated amount, till the residual tenure of such loans. Provided that in case of existing ratings assigned to working capital facilities exceeding Rs.250 crore, the CRA shall undertake rating surveillance only till the next renewal of such facility by the banks.
4. All other provisions regarding external credit ratings stipulated in the Master Circular ibid remain unchanged.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/50 · issued 10 Jul 2024. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=12700&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.
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