RBI suggested lower risk weights for certain segments to reduce the capital requirements for banks.(Source: PTI) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Reserve Bank of India proposed to make the expected credit loss framework applicable to banks, effective April 1, 2027. The central bank will also give a glide path of nearly four years to smoothen any impact from higher provisioning, if any.

"Further, it is proposed to make the revised Basel III capital adequacy norms effective for commercial banks from April 1, 2027," RBI Governor Sanjay Malhotra said in a statement on Wednesday following the monetary policy announcement.

RBI also suggested lower risk weights for certain segments to reduce the capital requirements for banks.

"It may be recalled that capita

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