The Reserve Bank of India has introduced the Expected Credit Loss Framework, requiring banks to proactively estimate credit losses. This new approach categorizes loans into three stages based on risk, with specific provisioning requirements. The framework aims to improve transparency and financial stability, necessitating robust data systems and governance within banks.
Please click here to read the full article by Nand Gopal Anand, Partner; Harshit Dusad, Partner and Vrindesh Patel, Principal Associate, published in Tax Guru.
Nand is a Partner in the Gurugram office of the firm. He specialises in Banking & Finance, with specific focus on general lending, external commercial borrowings, overseas direct investments, project finance, trade finance, shipping finance and real estate finance related transactions.