The Reserve Bank of India issued amendments to its prudential capital adequacy directions for All India Financial Institutions (AIFIs), revising how claims on non-resident corporates are risk weighted and adding CareEdge Global IFSC Limited as an eligible international credit rating agency for specified exposures originating at an International Financial Services Centre (IFSC). For non-resident corporate claims rated by S&P, Fitch or Moody’s, the revised mapping sets risk weights at 20% (AAA to AA), 50% (A), 100% (BBB to BB), 150% (below BB) and 100% (unrated). For non-resident corporate claims originating at an IFSC and rated by CareEdge Global IFSC Limited, the mapping is 20% (AAA), 30% (AA), 50% (A), 100% (BBB) and 150% (BB and below). Unrated claims with aggregate exposure from the banking system above INR 200 crore attract a 150% risk weight, and claims with aggregate exposure above INR 100 crore that were previously rated but have become unrated also attract 150%; unrated corporate claims cannot receive a risk weight preferential to that assigned to the sovereign of incorporation. The amendments apply with immediate effect.
Reserve Bank of India 2026-01-09
Reserve Bank of India amends AIFI capital adequacy rules to recognise CareEdge Global IFSC ratings and update risk weights for non-resident corporate exposures
The Reserve Bank of India has amended its prudential capital adequacy directions for All India Financial Institutions, revising risk weights for claims on non-resident corporates and adding CareEdge Global IFSC Limited as an eligible credit rating agency for exposures at an International Financial Services Centre. Effective immediately, the amendments specify risk weights based on ratings from S&P, Fitch, Moody’s, and CareEdge, with unrated claims subject to higher risk weights under certain conditions.