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The Reserve Bank of India has today issued the Master Direction on Minimum Capital Requirements for Operational Risk after appropriately considering the feedback received from stakeholders. The Directions have been issued in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949. 2. As part of convergence with Basel III standards, the Reserve Bank of India had issued a draft ‘Master Direction on Minimum Capital Requirements for Operational Risk’ on December 15, 2021, for public comments. 3. The Directions require all specified Commercial Banks (excluding Local Area Banks, Payments Banks, Regional Rural Banks, and Small Finance Banks) to hold sufficient regulatory capital against their operational risk exposures. 4. The effective date of implementation of these Directions shall be communicated separately. (Yogesh Dayal) Press Release: 2023-2024/471 |
