More Stories

Informist, Wednesday, Oct. 1, 2025

--RBI Malhotra: ECL framework is proposed to be made applicable to banks 

--RBI Malhotra: ECL framework for banks to be effective Apr 1, 2027 

--RBI Malhotra: ECL framework for bks to have glide path of nearly 5 years 

MUMBAI – The Reserve Bank of India Governor Sanjay Malhotra on Wednesday said the expected credit loss framework will be effective for banks from Apr. 1, 2027. The guidelines are expected to enhance credit risk management practices, promote better comparability of reported financials across institutions, the governor said. "The guidelines are expected to enhance credit risk management practices, promote better comparability of reported financials across institutions. The framework is designed to be implemented in a non-disruptive manner with a suitable glide-path," the RBI said.  

The framework is designed to be implemented with a suitable glide-path of nearly five years, the governor said while outlining the monetary policy outcome and laying down the policy on development and regulatory changes. The RBI came out with a discussion paper in January 2023 on the expected-credit-loss approach for loan loss provisioning by banks. In October 2023, it formed an external working group on the framework for provisioning by banks. However, several industry participants raised concerns with the RBI on the changes proposed by the central bank. 

The RBI's Monetary Policy Committee on Wednesday kept the repo rate unchanged at 5.50% with a 'neutral' stance. End

Reported by Srijita Bose

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.