RBI tweaks operational risk capital framework for banks

SENSEX 73,123.83

 -125.56

NIFTY 22,600.00

 -87.65

CRUDEOIL 9,825.00

+ 341.00

GOLD 142,066.00

 -1,243.00

SILVER 195,845.00

 -3,754.00

SENSEX 73,123.83

 -125.56

NIFTY 22,600.00

 -87.65

NIFTY 22,600.00

 -87.65

CRUDEOIL 9,825.00

+ 341.00

CRUDEOIL 9,825.00

+ 341.00

GOLD 142,066.00

 -1,243.00

'; } document.getElementById("lgdv").innerHTML = htmlElements; } function numberformat(i) { return Number(parseFloat(i).toFixed(2)).toLocaleString('en', { minimumFractionDigits: 2 }) } async function gatherResponse(response) { const { headers } = response; const contentType = headers.get('content-type') || ''; if (contentType.includes('application/json')) { return await response.json() } return response.text(); } function getWidth() { if (Math.max(document.body.scrollWidth,document.documentElement.scrollWidth,document.body.offsetWidth,document.documentElement.offsetWidth,document.documentElement.clientWidth) > 991) { document.getElementById("mob").style.display = "none"; document.getElementById("lgdv").style.display = "block"; } else { document.getElementById("mob").style.display = "block"; document.getElementById("lgdv").style.display = "none"; } } getWidth(); THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.

The central bank also clarifies that operational risk losses used for calculating the Internal Loss Multiplier (ILM) will be considered net of recoveries.

By Our Bureau

Updated - October 23, 2026 at 10:25 PM. | Mumbai

FILE PHOTO: A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas/File Photo | Photo Credit: FRANCIS MASCARENHAS

The Reserve Bank of India on Friday amended its operational risk capital framework for commercial banks ahead of its implementation from April 1, 2027. The central bank issued detailed guidance on the computation of Operational Risk Capital (ORC), including an indicative mapping of Business Indicator (BI) items to balance sheet and profit-and-loss account schedules.

The central bank also clarified that operational risk losses used for calculating the Internal Loss Multiplier (ILM) will be considered net of recoveries. Further, banks with at least five years of high-quality loss data can use such data for computing the loss component if 10-year data is unavailable.

Published on October 23, 2026

THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.Sign into Unlock benefits!

• Access 10 free stories per month
• Get notified by email for early preview to new features, discounts & offers