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RBI asks rating agencies to scan firms' bank details to assess ability to repay loans, says report

Updated : August 22, 2018 10:06 AM IST

Many companies are reluctant to part with such information except when banks or regulators order a forensic audit of borrower’s copy.
According to the report, a step like this will red flag the possible diversion of fund through subsidiaries, shell companies or other parties, putting them under a watch.
RBI, which gives rating agencies the accreditation to rate loans of Rs 10 crore or more, said that any actions on a bank debt could immediately influence ratings of other tradeable data such as bonds and debentures floated by the company to raise funds, the report said.
RBI asks rating agencies to scan firms' bank details to assess ability to repay loans, says report
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