%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(3).png "RBI permits banks to use ratings of Brickwork Ratings subject to conditions")
- After two years of forbidding fresh ratings due to regulatory concerns, banks can now utilize Brickwork Ratings’ assessments for calculating risk weights for capital adequacy purposes.
- However, there are certain conditions attached to this permission:
- New Rating Mandates: Banks can obtain ratings from Brickwork Ratings for bank loans not exceeding Rs 250 crore.
- Existing Ratings Surveillance: Brickwork Ratings may undertake rating surveillance for existing ratings, regardless of the rated amount, for the residual tenure of such loans.
- Larger Facilities: For existing ratings assigned to working capital facilities exceeding Rs 250 crore, surveillance will be conducted only until the next renewal of such facility by banks.
Question:
1 Under the new permission of RBI, banks can obtain fresh ratings from Brickwork Ratings for bank loans up to:
- A) Rs 100 crore
- B) Rs 250 crore
- C) Rs 500 crore
- D) D) Rs 1000 crore
