RBI Tightens Operational Risk and Leverage Ratio Norms for Banks; New Rules From April 2027
New Delhi, Oct. 24 -- The Reserve Bank of India (RBI) has revised banks' operational risk capital and leverage ratio frameworks, changing income classification, exposure calculations and disclosure requirements. Both sets of directions will take effect from April 1, 2027.
The operational risk framework divides the business indicator used to calculate capital requirements into three components: Interest, Lease and Dividend Component (ILDC), Services Component (SC) and Financial Component (FC).
The ILDC covers interest income from loans, securities, leases and derivatives, and expenses on deposits, debt securities and leases. Interest rate derivative assets must be measured at fair value, with only positive values included.
The SC covers...
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