India, currently leading a three-Test home series against the West Indies [ Images ] 2-0, were pushed up the ladder by Australia's thrilling two-wicket win in the Johannesburg Test.
Michael Clarke's [ Images ] men chased a record 310-run target to level the series in a nerve-wrecking climax that was interrupted by rain.
The 1-1 result pushed South Africa to the third spot with 116 rating points, a point less than India.
India were the world number one till they were humiliated 0-4 by England [ Images ] in an away series in July-August.
England occupy the top spot with 125 rating points, while Australia are placed fourth with 105 ratings points.
Sri Lanka [ Images ] complete the top-five with 99 points followed by Pakistan (98).