Mumbai, Sep 30 (IANS): The Reserve Bank of India (RBI) will come out with discussion papers on adopting expected loss-based approach for loan loss provisioning and on securitisation of stressed assets framework, Governor Shaktikanta Das said.

He also said new guidelines on the regional rural banks (RRB) allowing internet banking facilities to their customers will be issued soon.

According to Das, the proposed guidelines for securitisation will be in addition to the ones that are in vogue.

In September 2021, the RBI had issued the revised framework for securitisation of standard assets.

As regards securitisation of non-performing assets, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, currently provides a framework for such securitisations to be undertaken by Asset Reconstruction Companies (ARCs) licensed under the Act.

However, based on market feedback, stakeholder consultations and the recommendations of the Task Force on Development of Secondary Market for Corporate Loans, it has been decided to introduce a framework for securitisation of stressed assets in addition to the ARC route, similar to the framework for securitisation of standard assets.

The RBI is also looking at making banks to provide for loan loss based on expected loss approach from the incurred loss approach.

The discussion papers on the above two issues will be issued by RBI, Das said on Friday while announcing the bi-monthly monetary policy.

In order to promote the spread of digital banking, the RBI will revise its norms for RRBs allowing internet banking for its customers.