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
