Reserve Bank issues Second Amendment Directions setting the path for Basel III operational risk capital
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 amendment fixes the implementation date for the Basel III Standardised Approach for operational risk capital, provides an indicative mapping of Business Indicator components to financial statement schedules and line items, and incorporates clarifications issued by the Basel Committee on Banking Supervision after the original directions. It amends the Reserve Bank of India (Commercial Banks - Forthcoming Instructions) Directions, 2025, issued on 28 November 2025, whose Chapter IV had left the operational risk implementation date and the Business Indicator mapping to be announced later. The press release was signed by Brij Raj, Chief General Manager, and carries Press Release number 2026-2027/1380.
In plain words
Basel III Third Basel Accord — An international set of bank capital and liquidity standards framed by the Basel Committee on Banking Supervision.
Operational risk Operational risk — The risk of loss from failed internal processes, people, systems or external events, as distinct from credit or market risk.
BCBS Basel Committee on Banking Supervision — The global standard setter for the prudential regulation of banks, based at the Bank for International Settlements.