1. In India credit rating agencies are regulated by the Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.

Which of the statements given above are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Correct Answer: b) 2 and 3 only

Question from UPSC Prelims 2022 GS Paper

Explanation :

Regulation of Credit Rating Agencies in India

In India, credit rating agencies are not regulated by the Reserve Bank of India (RBI). Instead, they are regulated by the Securities and Exchange Board of India (SEBI). SEBI is the regulatory body for securities and commodity market in India under the jurisdiction of the Ministry of Finance, Government of India. It is SEBI that lays down the policies and regulates the functioning of credit rating agencies in India.

ICRA Limited

The rating agency popularly known as ICRA is indeed a public limited company. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks, and financial services companies as an independent and professional investment information and credit rating agency.

Brickwork Ratings

Brickwork Ratings is an Indian credit rating agency. It is one of the credit rating agencies registered with SEBI and provides credit ratings for corporations, banks, financial institutions, insurance companies, state governments, and other public entities.

Therefore, statements 2 and 3 are correct, while statement 1 is incorrect.