The Reserve Bank of India (RBI) has issued final directions on the Expected Credit Loss (ECL) framework, with implementation scheduled to begin on April 1, 2027. The framework aligns India’s prudential norms with global financial reporting standards and aims to strengthen transparency, comparability and resilience in the banking sector. By adopting a forward-looking approach, ECL recognises changes in credit risk earlier, before losses crystallise as nonperforming assets, and supports more timely, risk-sensitive provisioning. Implementation will require reliable, consistent data across systems, robust internal models for probability of default (PD), loss given default (LGD) and exposure at default (EAD), forward-looking macroeconomic scenarios, and sound model validation and controls. This shift has direct implications for capital, earnings, risk appetite and business strategy. Board Members therefore have a critical role in setting the tone, approving the governance framework, challenging key assumptions and estimates, and ensuring management has a credible, adequately resourced implementation plan. Their informed oversight will be central to a smooth transition and to the integrity of ECL-based reporting and provisioning.
This programme will equip Board Members of regulated entities (REs) with a practical understanding of the ECL approach to credit-loss provisioning and its implications for their institutions. It will help them to discharge their oversight responsibilities by strengthening their ability to question management on governance, data quality, model design and validation, forward-looking assumptions, implementation readiness, and the effects on provisions, capital and business decisions. The programme will support informed Board engagement in planning and monitoring a controlled transition to ECL-based provisioning.
The program will deal with the following topics:
Chairpersons and Board Members of Banks, FIs and NBFCs
Rs. 20000/- + @18% GST