RBI likely to issue FAQ soon to clarify ECL implementation; some provisioning matter still under review
Economic Times 1 hr ago·13 Nov 2026, 3:31 pm
The Reserve Bank of India (RBI) is preparing to release a set of frequently asked questions (FAQs) to clarify the implementation of the Expected Credit Loss (ECL) framework. This move follows a recent meeting between the regulator and bank CEOs to discuss how the new rules are being applied. The FAQs aim to address lingering concerns among lenders regarding the treatment of specific loan categories and the calculation of provisioning requirements.
For investors, this development is significant as it provides much-needed clarity on the financial health of banks. Ambiguity in accounting standards can lead to volatility in stock prices, so this clarification helps stabilize market expectations. It also signals that the RBI is actively working to ensure banks are better prepared to handle future risks, which is a positive sign for the broader banking sector.
Excerpt from Economic Times
Updated On Nov 13, 2026 at 09:07 PM IST The Reserve Bank of India ( RBI ) is expected to issue a frequently asked questions (FAQ) document soon to address banks' concerns over the implementation of the Expected Credit Loss (ECL) framework, according to three senior bankers who spoke to ETBFSI. ETBFSI had earlier…Read the original at Economic Times
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