Reserve Bank of India mandates ECL provisioning from April 2027

Indian rules align with global accounting

With this move, India's banking rules are catching up with global standards: think the International Accounting Standards Board and the US Financial Accounting Standards Board.
The idea is to spot risks early rather than just reacting after things go wrong.
As Rajosik Banerjee from KPMG India put it, these rules mean stricter checks on who gets a loan and bigger safety nets for banks, making the whole system more stable even when global markets get shaky.