RBI proposes banks to design own credit loss models under newer provisioning system
Admin
Jan 17, 2023 11:43
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Banks will be allowed to design own credit loss models and spread the higher provisions over a five-year period under a newer system of setting aside money for lending, the RBI proposed on Monday.
The Reserve Bank of India will issue “broad guidance” required to be considered while designing the credit risk models, the RBI said in the paper which is now open for public comments.
