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Daily Archives: January 17, 2023

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Provisions to be made on an expected credit loss (ECL)

Reserve Bank Functions and newsBy Surendra NaikJanuary 17, 2023

The Reserve Bank of India on Monday released the draft guidelines for banks to make provisions on an expected credit loss (ECL) basis as against the current framework of incurred loss method. It means banks have to shift away from the current method – where loan loss provisions are made after a default – to…

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