{
  "id": 1385391,
  "title": "RBI moves to distance self from bank deposit ratings",
  "url": "https://urgent.news/2026/08/16/rbi-moves-to-distance-self-from-bank-deposit-ratings-1385391",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-16T19:16:08.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/rbi-moves-to-distance-self-from-bank-deposit-ratings/articleshow/133284278.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) is distancing itself from bank deposit ratings. Recently, the central bank instructed the credit rating industry to stop identifying RBI as the regulator of rated instruments in their rating communiques. This directive, which came into effect about ten days ago, is based on rules set by the Securities and Exchange Board of India (SEBI) for credit rating agencies (CRAs). SEBI requires rating firms to disclose the financial sector regulator for each rated instrument in their press releases and reports. If RBI cannot be named as the regulator for bank deposits, credit rating companies may be forced to stop issuing ratings on bank deposits. This is the first time RBI has issued such a directive, and the reasons behind it are unclear. Rating companies have approached SEBI for guidance, and the RBI's directive may stem from concerns over potential deposit flight and instability following a sudden downgrade of a bank. While depositors generally do not pay attention to ratings, PSUs, state-run organizations, and many corporates rely on ratings before depositing surplus funds. The Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures bank deposits up to ₹5 lakh, may also be influenced by this decision, as raising the limit to ₹7.5 lakh is currently pending approval. Credit rating agencies (CRAs) will continue to rate other bank-linked instruments, such as loans and bonds, except for unlisted bonds, corporate deposits, and securitised papers, which are now under RBI's domain. The RBI spokesperson was not available for comment on the matter.",
  "summary": "The Reserve Bank of India has instructed rating agencies to refrain from categorizing it as the regulator overseeing bank deposits. This recent directive raises the possibility that these credit assessment organizations may halt the evaluation of bank deposits entirely. With threats of deposit outflows and potential bank instability stemming from any downgraded ratings, the landscape of retail…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times",
        "title": "RBI moves to distance self from bank deposit ratings",
        "url": "https://urgent.news/2026/08/16/rbi-moves-to-distance-self-from-bank-deposit-ratings",
        "published": "2026-08-16T19:16:08.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}