Reserve Bank of India Governor Shaktikanta Das Thursday said banks will be given ample time to implement Expected Credit Loss (ECL)-based loan loss provisioning norms. Speaking to the media after announcing the monetary policy, Das said the banks will be able to manage the additional capital requirement for transition to the new framework. A look at what Das said: On ECL framework If you look at our track record, we give time for compliance. We will give them banks sufficient time for implementation (of ECL norms). There's no need to create any panic. The comments (on discussion paper on introduction of ECL framework) have been received, they are under examination and we will issue the circular. We are mindful of the fact that the banks will need some time to implement it. We have assessed the additional capital requirements and it is quite manageable limits as per our assessment. On rupee trade The process for the international settlement of trade in rupee through the arrangement of rupee Vostro accounts has already started. As regards the investment (of rupee surplus balance) in Indian securities or bonds, naturally being the first time, the central banks as well as the banks on the other side, through bilateral discussions, are seeking some further clarity. It is under discussion with them and we expect the process to begin soon. On US Federal Reserve rate hike expectation Our monetary policy actions, as I have been saying time and again, are determined primarily by the domestic conditions. We do not look at the actions of other central banks to determine our actions, but yes, we do watch what the other central banks are doing because that will have an impact on the global financial situation, currency markets and other aspects. On call rates Our target of monetary policy is a 6.5 per cent policy repo rate. Typically, our expectation is, and what we would like to see is, that the overnight call rates are also aligned to 6.5 per cent. Beyond that it is a function of day to day or week-to-week fluctuation in the overall liquidity situation. So, we expect and would like the overnight call rates to be aligned with the 6.5 percent policy rate. On action against financial influencers Sebi is already dealing with it so in RBI we have no such thinking to issue or get into that territory.
