New Delhi:  RBI pulls banks up on their ratings of exposures without naming the lenders - The Reserve Bank of India (RBI) said on Monday that banks won't use rating agencies' ratings of bank loans without the names of the lenders. Banks will have to treat these loans as unrated, and they will give them a risk weight.

In a circular sent to all banks on Monday, the RBI said that a large number of Press Releases (PRs) from external credit assessment institutions (ECAIs) don't have details about lenders because the borrowers haven't given the ECAIs the consent they need.

"It is, therefore, advised that a bank loan rating without the above disclosure by the ECAI shall not be eligible for being counted for capital computation by banks... They (banks) shall treat such exposures as unrated and assign applicable risk weights," the Reserve Bank of India said.

It warned that if the necessary information isn't given, banks would have to put risk weights on exposures that haven't been rated. The central bank warned that this could lead to less money being set aside for capital and underpricing of risks.

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