RBI notifies banks’ use of CRISIL ratings for cap adequacy

With CRISIL Ltd transferring its ratings business to wholly-owned arm CRISIL Ratings Ltd, the Reserve Bank of India has notified that banks can use ratings given by CRISIL Ratings for risk-weighting their claims for capital adequacy purposes. The notification was necessary as a previous one named

CRISIL Ltd, and some banks wanted Reserve Bank of India to notify the change in business to the separate rating agency. RBI added that the rating-risk weight mapping for the long term and short-term ratings assigned by CRISIL Ratings would remain the same, with no change in rating symbols either.