The Reserve Bank of India on 15th December 2021 has placed on its website “Draft Master Direction on Minimum Capital Requirements for Operational Risk’ for comments of stakeholders and members of the public. These directions shall be applicable to all Commercial Banks (excluding Local Area Banks, Payments Banks, Regional Rural Banks, and Small Finance Banks).
These direction shall come into effect from April 1, 2023 and all existing approaches viz. Basic Indicator Approach (BIA), The Standardised Approach (TSA)/ Alternative Standardised Approach (ASA) and Advanced Measurement Approach (AMA) for measuring minimum operational risk capital requirements shall be replaced by the new standardised approach (Basel III Standardised Approach).
The comments on the draft Master Directions from all stakeholders may be sent by email with the subject line “Comments on Draft Master Direction on Minimum Capital Requirements for Operational Risk”, by January 31, 2022.
