RBI revises Business Indicator rules for operational risk capital from April 2027

Points to Remember

• Amended Chapter IV on operational risk capital takes effect from April 1, 2027.
• Business Indicator constituents are ILDC (Interest, Lease and Dividend), SC and FC, with updated sub-items.
• Interest earning assets include NPAs/non-accrued credit obligations, measured at financial year end.
• Indicative mapping to financial statement schedules (e.g., Schedules 13, 14, 15, 16) is provided, but banks must compute ORC per these Directions where presentation differs.
• Issued under Section 35A of the Banking Regulation Act, 1949.

Why it matters

Operational risk capital calculations will change from FY 2027-28, so banks should begin reconciling Business Indicator data with the new mappings well before the effective date.