The Reserve Bank of India (RBI) has firmly rejected banks' requests for an extension on the transition to the expected credit loss (ECL) framework, maintaining the deadline of April 1, 2027. This new framework aims to enhance the early identification and provisioning for potential loan losses, contrasting with the previous 'incurred loss' model, which was reactive. Under the ECL model, financial assets will be classified into three stages based on credit risk changes since initial recognition. To facilitate the transition, RBI has proposed a five-year glide path from the implementation date to March 31, 2031. Analysts indicate that private banks, with stronger capital buffers and advanced data systems, are better equipped to handle this shift, while public sector banks may encounter additional provisioning challenges due to their higher exposure to micro, small, and medium enterprises (MSMEs). The RBI emphasized that a uniform implementation framework would not be suitable due to the diverse nature of banks' portfolios and risk profiles.