Mumbai, April 27 -- The Reserve Bank of India (RBI) on Monday said it has rejected lenders' demand for more time to transition to the expected credit loss (ECL) framework mandate. With the deadline being 1 April 2027, the regulator said banks have a year to prepare for the new framework that aims for early identification and provision for potential loan losses.

Banks had sought more time to enable them to build databases and models, and upgrade their systems for the new framework.

"In addition, to ease the transition to the new framework, a calibrated transition framework has been provided, including transitional arrangement for one-time capital impact on account of ECL transition, three-year timeline for application of effective intere...