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    Question

    As per the recently published discussion paper on

    Introduction of Expected Credit Loss Framework for Provisioning by Banks which of the following banks are excluded from its scope:
    A All Commercial Banks Correct Answer Incorrect Answer
    B RRBs & Small Co-operative banks Correct Answer Incorrect Answer
    C RRBs Correct Answer Incorrect Answer
    D Small Co-operative Banks Correct Answer Incorrect Answer
    E ECL Framework is applicable to all banks. Correct Answer Incorrect Answer

    Solution

    Scope and applicability of the proposed ECL framework: The proposed framework would be applicable to all scheduled commercial banks. Regional rural banks and small co-operative banks would be excluded from the proposed framework. However, the existing IRACP norms are applicable to all commercial banks, regional rural banks and co-operative banks.

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