<h1>Central bank to apply ECL provisioning, revised Basel III norms and risk-based deposit insurance for commercial banks from April 1, 2027</h1> The central bank announced that an expected credit loss (ECL) provisioning framework will apply to all scheduled commercial banks (excluding small finance, payment and regional rural banks) and all-India financial institutions from April 1, 2027, with a glide path to March 31, 2031, and asset classification into three ECL stages for provisioning. Revised Basel III capital norms for commercial banks (same exclusions) are also proposed from April 1, 2027, with a forthcoming Standardised Approach for Credit Risk reducing risk weights for MSMEs and residential real estate. Operational risk norms are finalised; market risk is under consultation. A risk-based deposit insurance premium, capped by the current flat rate, will be introduced next financial year.