The RBI has amended the minimum capital requirements for operational risk for commercial banks through its Second Amendment Directions, 2026, revising Chapter IV of the 2025 Directions.
RBI Amends Minimum Capital Requirements for Operational Risk
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Second Amendment Directions, 2026, effective October 23, 2026. The amendment revises Chapter IV of the 2025 Directions, which prescribes minimum capital requirements for operational risk, following a comprehensive review of risk assessment methodologies.
The update reflects RBI’s enhanced supervisory expectations regarding operational risk management, particularly in light of increasing cyber threats, fraud incidents, and technology-driven banking operations. The revised norms may incorporate more granular risk categorization and stress testing protocols.
Legal and compliance departments in commercial banks must reassess their operational risk capital models and ensure alignment with the updated framework. The amendment underscores RBI’s focus on strengthening systemic stability through robust risk-based capital planning.
Citations
- RBI (Commercial Banks – Forthcoming Instructions) Second Amendment Directions, 2026
