Reserve Bank issues Second Amendment Directions on minimum capital for operational risk
23 October 2026
The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks - Forthcoming Instructions) Second Amendment Directions, 2026 on minimum capital requirements for operational risk.
The parent Directions were issued on 28 November 2025. Their Chapter IV set out minimum capital requirements for operational risk but left the effective date and the mapping of Business Indicator components to be notified later.
The amendment specifies the implementation date for the Basel III Standardised Approach for minimum operational risk capital.
It also provides an indicative mapping of Business Indicator components to financial statement schedules and line items, and incorporates further clarifications issued by the Basel Committee on Banking Supervision.
A Governor's Statement of 1 October 2025 had said the revised Basel III capital adequacy framework for commercial banks would take effect on 1 April 2027.
Small Finance Banks, Payment Banks and Regional Rural Banks are excluded from that framework.
In plain words
Operational risk Risk of loss from failed internal processes, people, systems or external events — One of the three main risks for which banks must hold regulatory capital.
BCBS Basel Committee on Banking Supervision — The global standard setter for bank regulation, hosted by the Bank for International Settlements at Basel.