The directions introduce a forward-looking Expected Credit Loss (ECL) framework alongside existing NPA norms, supported by a three stage classification approach based on credit risk changes. Banks must adopt the Effective Interest Rate (EIR) method and compute provisions using probability based models incorporating macroeconomic factors. NPAs continue to be defined primarily by a 90 day overdue rule, with borrower level classification and detailed norms for special cases such as agriculture, guarantees, and consortium lending. Prudential provisioning floors are prescribed across loan categories to ensure minimum loss coverage.