
🚨 RBI may introduce a major new banking rule in India Banks could soon be required to prepare for possible loan losses much earlier through the Expected Credit Loss (ECL) framework. 📌 What could change? • Higher provisions for risky loans • Short-term pressure on bank profits • Stronger long-term financial stability • Better protection during future crises Instead of reacting after loans become bad, banks may now prepare in advance. This system is already followed by many global banking networks, and RBI now wants Indian banks to move closer to international standards. Small banking reforms today could help prevent bigger financial problems tomorrow.
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