12 Oct 2025 | 5 Mins Read
Motilal Oswal picks HDFC Bank and SBI as top RBI reform beneficiaries
Flipitmoney
Reserve Bank of India (RBI) proposes to transition scheduled commercial banks to a model-based provisioning system from April 2027. The Expected Credit Loss framework introduces a three-stage classification of assets and anchors provisioning in probability of default, loss given default, and exposure at default. Lower risk weights for retail, MSME, and priority segments will enhance credit flow.