The Reserve Bank of India announced on 23 October 2026 that it had issued the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Second Amendment Directions, 2026, addressing minimum regulatory capital requirements for operational risk. The announcement concerns implementation of the Basel III Standardised Approach for operational risk, rather than a consultation proposal.
RBI explained that Chapter IV of its Commercial Banks – Forthcoming Instructions Directions, 2025, issued on 28 November 2025, already contained minimum capital requirements for operational risk. However, the implementation date and indicative mapping of Business Indicator components to financial-statement schedules and line items had been reserved for a subsequent announcement.
The new amendment specifies the implementation date, provides indicative mapping of the Business Indicator components and incorporates additional clarifications issued by the Basel Committee on Banking Supervision. Business Indicator mapping is relevant because the standardised framework uses financial information to determine operational-risk capital requirements.
RBI's official announcement refers to the revised Basel III capital adequacy framework for commercial banks, excluding small finance banks, payments banks and regional rural banks, becoming effective from 1 April 2027. Affected commercial banks should review the final amendment and prepare the necessary financial-statement data mapping, capital calculation processes and regulatory reporting controls ahead of implementation.
The official RBI press release confirms the nature and timing of the amendment. Banks should refer to the full amendment directions for the precise technical calculation requirements and regulatory definitions.