While the phased rollout provides breathing space, banks will need to invest early in data and governance capabilities to embed ECL seamlessly into their operating model.
FinTech BizNews Service
Mumbai, October 2, 2025: The Monetary Policy Committee (MPC) held its 57th meeting from September 29 to October 1, 2025, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
Dhruv Parikh, Partner, Financial Services Risk Consulting, EY India, has shared noteworthy reaction to the MPC decisions:
“The RBI’s move to transition from an incurred loss model to an Expected Credit Loss (ECL) framework is a pivotal moment for Indian banking. This shift will not only strengthen resilience and bring our provisioning practices in line with global standards, but also compel banks to fundamentally rethink how credit risk is assessed and managed. The implications will extend to product and pricing strategies, Early Warning Signals (EWS), collections, and recovery planning. While the phased rollout provides breathing space, banks will need to invest early in data and governance capabilities to embed ECL seamlessly into their operating model. Those who adopt a proactive, enterprise-wide approach will be better positioned to build trust, enhance transparency, and drive long-term competitiveness.”
