Banks may hike loan rates under ECL norms

The Reserve Bank of India has proposed new rules called ECL (Expected Credit Loss) for banks.

These rules might make banks increase loan interest rates and change how they lend money.

Experts say banks will need to look at lots of data to understand the risks better.

They might also prefer giving loans that are safer, like home or car loans, because they can recover more money if people can't pay back.

Small banks might increase rates more than big ones.

Overall, these changes will make banks think more carefully about the risks when they give loans.