Expected Credit Loss (ECL) based loan loss provisioning by banks requires lenders to assess the expected loss on their overall financial assets and set aside money for likely losses accordingly. Prior to this, banks used to make provisions after they incurred losses on loans. The Reserve Bank of India (RBI), on January 16, proposed a framework for adoption of an ‘expected loss-based' approach for provisioning by banks. As of now, these norms are meant for only scheduled commercial banks, excluding regional rural banks.