The Reserve Bank of India (RBI) has officially authorized banks to use ratings from Brickwork Ratings India Private Limited (BWR) for assessing risk-weighting in their capital adequacy evaluations. This significant approval follows BWR's recent compliance with regulatory conditions set by the Securities and Exchange Board of India (SEBI) in April 2024, allowing the firm to fully resume operations and onboard new clients.
In response to the regulatory approval, BWR expanded its Board of Directors, incorporating independent experts in banking, law, IT, and corporate business. This move aims to strengthen the firm's governance and operational integrity.
Mr. Santosh B Nayar, Chairman of BWR, stated that the RBI's approval highlights the company's commitment to maintaining high regulatory standards and delivering excellence in credit rating services. With a diverse board, BWR is focused on upholding the integrity of credit ratings and safeguarding investor interests.
Established in 2007 and headquartered in Bangalore, Brickwork Ratings provides credit rating services for a wide range of financial instruments, reinforcing its position as a trusted entity in the financial sector.
Changes in Remittance Norms
In another update, the Reserve Bank of India (RBI) has modified the rules concerning remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS). According to the new guidelines, authorized individuals can now facilitate remittances for all allowable purposes under LRS to IFSCs. This change enables the use of financial services or products as outlined in the International Financial Services Centres Authority Act, 2019.
Previously, the remittance scope under LRS to IFSCs was restricted to investments in securities within the IFSCs, excluding those issued by Indian entities outside the IFSCs. Moreover, the rules permitted payments for educational fees at foreign universities or institutions located within IFSCs.
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