The Reserve Bank of India has announced the “Guidance Note on Operational Risk Management and Operational Resilience’’. This Guidance Note aligns the Reserve Bank of India’s regulatory guidance with the Basel Committee on Banking Supervision (BCBS) Principles, viz., (a) ‘Revisions to the Principles for the Sound Management of Operational Risk’ and (b) ‘Principles for Operational Resilience’ (both issued in March 2021), while adopting the global best practices including those on operational resilience.
The systems, procedures and tools prescribed in this Guidance Note are indicative in nature and should be read in conjunction with the relevant instructions issued by the Reserve Bank of India from time to time. In case of inconsistency, if any, the relevant instructions issued by the Reserve Bank of India would prevail. The existing “Guidance Note on Management of Operational Risk” dated October 14, 2005, stands repealed with the issuance of this Guidance Note.
