RBI Adds CareEdge Global IFSC Ratings for Basel III
Why in the news
RBI gave banks one more rating source for judging risk on IFSC-based foreign corporate exposures. It added a fourth option beyond the earlier three global agencies.
Key facts
- Banks were earlier limited to international ratings from Fitch, Moody’s and Standard & Poor’s.
- New option: CareEdge Global IFSC Ltd, for scheduled commercial banks other than LABs, payments banks and RRBs.
- Purpose: more choice for credit risk assessment under the Basel III standardised approach, mainly for IFSC exposures.
| CareEdge Global IFSC rating | Risk weight |
|---|---|
| AAA | 20% |
| AA | 30% |
| A | 50% |
| BBB | 100% |
| BB and below | 150% |
Exam angle
- Entity added: CareEdge Global IFSC Ltd.
- Excluded banks: LABs, Payments Banks, RRBs.
- Risk weight: AAA 20% to BB and below 150%.