RBI to introduce expected loss approach for bad loan provisioning in 2023-24

The RBI is proposing to introduce expected loss-based approach for provisioning during 2023-24 as part of its measures to strengthen the bad loan resolution ecosystem. This will enable banks to design their own credit loss models and spread the higher provisions over a five-year period under a newer system of setting aside money for lending.

from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/MhrbGXx
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