The Reserve Bank of India recently released a list of six domestic credit rating agencies that banks are advised to use for risk weighting their claims about capital adequacy. Which of the following is NOT one among the aforementioned six agencies?
Indian Enterprises Rating Agency of India
RBI's Approved Credit Rating Agencies for Banks
The Reserve Bank of India (RBI) provides guidelines for banks regarding the capital they must hold against various types of risks, including credit risk. For assessing the risk associated with claims (like loans) on various entities, banks are often allowed to use ratings provided by accredited external credit assessment institutions (ECAIs), which in India are the domestic credit rating agencies.
RBI periodically reviews and lists the domestic credit rating agencies whose ratings banks can use for the purpose of risk weighting their claims for capital adequacy requirements under guidelines like Basel III. Typically, there is a set number of these agencies recognized for this specific purpose.
The question asks to identify which among the given options is NOT one of the six domestic credit rating agencies that banks are advised by RBI to use for risk weighting their claims.
Let's consider the commonly recognized domestic credit rating agencies whose ratings are accepted by RBI for regulatory purposes such as risk weighting:
- CRISIL Ratings Limited
- ICRA Limited
- CARE Ratings Limited (formerly Credit Analysis and Research Limited)
- India Ratings and Research Private Limited
- Acuite Ratings & Research Limited (formerly SMERA Ratings Limited)
- Infomerics Valuation and Rating Private Limited
Now let's look at the options provided in the question:
- India Ratings and Research Private Limited
- Acuite Ratings & Research Limited
- CRISIL Ratings Limited
- Indian Enterprises Rating Agency of India
- Credit Analysis and Research Limited (CARE Ratings Limited)
Comparing the list of commonly recognized agencies with the options:
- India Ratings and Research Private Limited is a recognized agency.
- Acuite Ratings & Research Limited is a recognized agency.
- CRISIL Ratings Limited is a recognized agency.
- Credit Analysis and Research Limited (CARE Ratings Limited) is a recognized agency.
- Indian Enterprises Rating Agency of India is NOT a recognized domestic credit rating agency whose ratings are typically used by banks for RBI's risk weighting purposes for capital adequacy.
Therefore, the agency that is NOT among the six domestic credit rating agencies commonly referred to by the RBI for risk weighting bank claims is 'Indian Enterprises Rating Agency of India'.
Important Questions from Miscellaneous
A stone is thrown horizontally from the top of a 20 m high building with a speed of 12 m/s. It hits the ground at a distance R from the building. Taking g = 10 m/s2 and neglecting air resistance will give :
A sphere of volume V is made of a material with lower density than water. While on Earth, it floats on water with its volume f1V (f1 < 1) submerged. On the other hand, on a spaceship accelerating with acceleration a < g (g is the acceleration due to gravity on Earth) in outer space, its submerged volume in water is f2V. Then:
A railway wagon (open at the top) of mass M1 is moving with speed v1 along a straight track. As a result of rain, after some time it gets partially filled with water so that the mass of the wagon becomes M2 and speed becomes v2. Taking the rain to be falling vertically and the water stationery inside the wagon, the relation between the two speeds v1 and v2 is :
Consider the following statements:
1. Distance between the longitudes becomes zero on North Pole and South Pole.
2. Distance between the longitudes is maximum on the Equator.
3. Number of longitudes is more than number of latitudes.
Which of the statements given above is/are correct?
One block of 2⋅0 kg mass is placed on top of another block of 3⋅0 kg mass. The coefficient of static friction between the two blocks is 0⋅2. The bottom block is pulled with a horizontal force F such that both the blocks move together without slipping. Taking acceleration due to gravity as 10 m/s2, the maximum value of the frictional force is :
