RBI Orders Rating Agencies to Omit Regulator Tag on Bank Deposits
· Business · Economic Times
The Reserve Bank of India (RBI) has instructed credit rating agencies in Mumbai to stop identifying the RBI as the regulator of bank deposits in their rating communiqués. The directive was given about ten days ago, according to two sources familiar with the development. Under SEBI rules introduced in February 2026, rating firms are required to disclose the financial sector regulator of the rated instrument in press releases and rating action reports. By prohibiting the RBI from being named, the move may lead rating agencies to stop issuing ratings on bank deposits altogether. The RBI did not explain the reason for the instruction, and a source said the hint suggests the central bank does not want deposits to be rated. Rating companies have sought guidance from SEBI following the RBI’s notice.
Why it matters
Investors and banks may lose an independent assessment of deposit safety, potentially influencing depositor behavior and market stability. Rating agencies will need to adjust their reporting practices under the new directive.
Read the original report — Economic Times
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