ECL norms from April 2027 banks already preparing says Dinesh Kumar Khara

Provisioning will shift to future loan losses

Indian banks will move to Expected Credit Loss ECL norms starting April 1, 2027, shifting provisioning from only past defaults to losses expected over time. Dinesh Kumar Khara says banks are already prepared and the impact is manageable. The change is expected to strengthen the system’s resilience against future economic stress by improving how credit risk is recognized.