RBI mandates expected credit loss model including small finance banks
NewsBytes | April 28, 2026 7:40 PM CST
Banks must provision old loans
Small finance banks are included too (but payments banks, local area banks, and regional rural banks can chill for now).
Banks need to apply these rules even on old loans by March 2030.
Loans backed by solid stuff like gold or cash will need less extra money set aside.
Experts think public-sector banks' net worth could dip 5% to 10% at first, but strong reserves should help balance things out.
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