Economy
RBI shifts banks’ operational-risk capital rules from April 2027
RBI amended operational-risk capital requirements for commercial banks, with the revised framework taking effect on April 1, 2027.
What happened
The Reserve Bank of India amended its 2025 directions on minimum capital requirements for operational risk. The changes revise how banks identify and classify components of the business indicator, including interest, lease and dividend income, interest expenses, and leased assets. The amended Chapter IV will apply from April 1, 2027.
Why it matters
Banks will need to calculate operational-risk capital using the revised descriptions and prescribed sub-items, including specified lease-related income, expenses, depreciation and impairment.
Source: RBI Notifications