RBI Permits Use of Brickwork Ratings for Loans Up to Rs 250 Crore and Tweaks Remittance Norms to IFSCs

The Reserve Bank of India (RBI) has allowed banks to use ratings by Brickwork Ratings India for loans up to Rs 250 crore.

In October 2022, RBI had told banks not to get any new ratings from Brickwork Ratings India.

This was because the Securities and Exchange Board of India (SEBI) had canceled Brickwork Ratings India’s registration as a Credit Rating Agency (CRA) in October 2022.

After reviewing the situation, RBI now permits banks to use Brickwork Ratings India’s ratings for assessing capital adequacy, with some conditions.

Banks can get fresh ratings from Brickwork Ratings India for loans up to Rs 250 crore. For existing ratings, Brickwork Ratings India can continue to monitor the ratings until the loan’s term ends, regardless of the loan amount.

RBI also made changes to the rules for sending money to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS).

Now, authorized persons can help with remittances for all allowed purposes under LRS to IFSCs, for financial services or products, according to the International Financial Services Centres Authority Act, 2019.

Previously, money could be sent to IFSCs only for investing in certain securities and paying fees for education at foreign universities or institutions in IFSCs.

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