The RBI has issued the Second Amendment Directions, 2026, clarifying implementation timelines and mapping of Business Indicator components for operational risk capital under revised prudential norms.
RBI Issues Directions on Minimum Capital for Operational Risk
The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Second Amendment Directions, 2026, amending earlier directions from November 28, 2025. The amendment provides clarity on the implementation of minimum capital requirements for operational risk.
Chapter IV of the original directions set out the capital framework but deferred the effective date and detailed mapping of the Business Indicator (BI) to financial statement line items. The present amendment specifies the indicative mapping and timelines for implementation, aligning with international best practices and Basel standards.
This regulatory update is crucial for bank compliance teams and internal auditors. It enhances consistency in operational risk capital calculations and strengthens resilience against non-credit and non-market risks. Banks must now integrate revised BI schedules into their Pillar 1 capital frameworks.
