- The expected credit loss framework is a method of estimating and provisioning for expected credit losses in the banking sector.
- Recently the Reserve Bank of India has constituted a 9-member committee to review the standards of ECL.
- This committee was headed by former professor R. Will be done by Narayanaswami.
- Apart from Narayanaswami, it includes 8 other members.
- The committee will suggest simplification of credit risk model principles, credit risk elements, verification process.
- The committee will submit its report to RBI in 3 months.
