Poging GOUD - Vrij

Glide path for ECL regime, Basel-II norms on capital, risk-tied deposit insurance

Mint New Delhi

|

October 02, 2025

he central bank has proposed a series of measures to enhance the resilience of India’s banking system, including giving more time to shift to the expected credit loss (ECL) regime, aligning with Basel norms on capital adequacy, dropping a plan to prevent banks and group entities in overlapping businesses, and a risk-based model to levy insurance premiums for deposit insurance.

- Srushti Vaidya & Neha Joshi

Glide path for ECL regime, Basel-II norms on capital, risk-tied deposit insurance

Deposit insurance premium to be linked to bank safety.

(MINT)

In January 2023, the Reserve Bank of India (RBI) had proposed a new system in which banks would anticipate loan losses and keep aside funds for them in advance, in a departure from the current practice of making provisions after the default. In a relief for banks, RBI on Wednesday proposed to roll out ECL beginning April, 2027, and a glide path till 31 March, 2031 to smoothen the onetime impact of higher provisioning. The apex bank also proposed to make the revised Basel III capital adequacy norms effective for commercial banks from | April, 2027. Under a standardized approach towards credit risk in the works, the proposed lower risk weights on certain segments are expected to reduce overall capital requirements, particularly for MSMEs and residential real estate, including home loans.

The RBl also proposed a new model of deposit insurance, where safer banks will pay less premiums while weaker ones pay relatively more. The risk-based model would be a departure from the current practice, where banks pay a uniform 12 paise for every ₹100 of deposits. The shift from the decades-old flat-rate system is designed to incentivize sound financial management, RBI said.

MEER VERHALEN VAN Mint New Delhi

Mint New Delhi

Mint New Delhi

Spirituality, with a side of artisanal coffee

Wavering between the scriptures and self-help platitudes, Namita Devidayal's book leaves the reader wishing they'd chosen a different book

time to read

5 mins

October 04, 2025

Mint New Delhi

Mint New Delhi

Zubeen Garg: Assam's first true rock star

The singer-songwriter has thousands of hits in different languages but it was his irreverence that gave him god-like status in a community starved of icons

time to read

7 mins

October 04, 2025

Mint New Delhi

Mint New Delhi

L’Oréal board in India next week

The board of French cosmetics giant L’Oréal, the world’s largest beauty group, will visit India next week to explore opportunities in one of the fastest-growing beauty markets. The first such visit comes amid recent management changes at the Indian arm of the Maybelline lipstick maker.

time to read

1 min

October 04, 2025

Mint New Delhi

ALL YOU KNEAD

AS PEOPLE MAKE HEALTHIER CHOICES, DAILY BREAD IS NO LONGER JUST WHITE AND SLICED BUT ARTISANAL, SMALL-BATCH AND MADE-TO-ORDER. IN RESTAURANTS, TOO, IT HAS RISEN FROM FILLER TO MAIN ACT

time to read

1 min

October 04, 2025

Mint New Delhi

Mint New Delhi

A conversation between fibre and photo

An ongoing show juxtaposes Monika Correa's tapestries and Seher Shah's prints and photogravures

time to read

4 mins

October 04, 2025

Mint New Delhi

Mint New Delhi

RBI plans sweeping overhaul to ease foreign borrowing

The central bank has proposed a sweeping liberalization of the external commercial borrowing framework, removing cost caps, widening eligibility, and tying fundraising limits to financial strength to make it easier for Indian firms to access foreign funds.

time to read

1 mins

October 04, 2025

Mint New Delhi

Kuku FM looks to raise up to $80 mn

Audio streaming platform Kuku FM has signed a term sheet to raise about $70-80 million in new funding, with South Korean-based video game publisher Krafton leading the round alongside existing investors, three people familiar with the matters said.

time to read

1 min

October 04, 2025

Mint New Delhi

Delhi, TN, Maha lead e-bus sales surge in H1

Govt incentives, charging infrastructure also fuel e-bus demand in Odisha

time to read

2 mins

October 04, 2025

Mint New Delhi

A case for loafing about

Taylor Swift apparently spends 60% of her time talking about bread (\"it's a loaf story,\" to quote her)—as I learnt from a reel I came across while trying to avoid getting down to the real work of the day (or should I say loafing about)—and it made me wonder when we became so obsessed about what came out of a packet and was eaten when we were sick.

time to read

1 mins

October 04, 2025

Mint New Delhi

Mint New Delhi

Draft gaming rules trigger pushback from stakeholders

India’s beleaguered online real-money gaming industry stakeholders have questioned what they call ambiguities in the draft rules of the law that ban any game involving financial winnings.

time to read

1 mins

October 04, 2025

Listen

Translate

Share

-
+

Change font size