RBI proposes ECL provisioning framework, replacing the loss-based method, enhancing risk management and comparability across banks.

• Introduce staging criteria for asset classification while retaining existing NPA classification norms under the framework.
• Set calibrated prudential floors for exposure classes separately in Stage‑1, Stage‑2, and Stage‑3 to ensure.
• Align income recognition using the Effective Interest Rate method and outline model risk management principles clearly.