RBI sticks to April 2025 ECL rollout as banks shift from loss based provisioning

NPA rules stay put while banks change how losses are booked

The Reserve Bank of India will introduce the Expected Credit Loss (ECL) provisioning framework starting April 1, 2025, requiring banks to move from loss based provisioning to a more proactive approach. RBI has outlined transition measures to support implementation and has clarified that Non-Performing Asset classification will remain unchanged, even as banks adjust credit cost recognition.