RBI Removes Restrictions on Use of Brickwork Ratings for Capital

The Reserve Bank of India (RBI) has removed the restrictions that were previously placed on Brickwork Ratings India Private Limited. This means that banks and other financial institutions can now once again use the credit ratings assigned by Brickwork for calculating their regulatory capital requirements. The RBI had earlier, in October 2022, directed the credit rating agency to cease onboarding new clients and had barred regulated entities from using its ratings, citing concerns over governance and procedural lapses. The decision to lift the ban comes after the RBI was satisfied with the remedial measures taken by Brickwork Ratings to strengthen its internal processes and address the identified deficiencies. This move restores Brickwork's position in the financial ecosystem and provides regulated entities with an additional choice of credit rating agency for their capital adequacy and risk assessment purposes.