Important Stories23 days after new RBI forex rules, individual service exporters still await clarity, banks lack SOPsIndia-US bond yield gap tops 250 bps as G-Sec yield hits 7.48%; FPI inflows uncertainStatistics Min proposes changes in PLFS to include unpaid work, better capture digital platform workersInfosys cuts FY27 growth guidance to 1-2% amid weak demand environmentGovernment asks industry bodies to tighten certification checks, conduct regular cybersecurity auditsFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. RBI tweaks operational risk capital framework for banks 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 ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/rbi-tweaks-operational-risk-capital-framework-for-banks/article71617546.eceCopy 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.

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Terms & conditions | Institutional Subscriber