In a bid to align Indian banks’ provisioning standards with those of global banks, the Reserve Bank of India (RBI) today proposed replacing the incurred-loss-based provisioning framework with an expected credit loss (ECL)- based provisioning framework. The draft norms on asset classification, provisioning and income recognition will be applicable to universal banks, effective April 1, 2027.The key elements of the proposed framework include the introduction of staging criteria for asset classification under ...