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RBI/2026-27/299 DOR.ORG.REC.22/21.06.050/2026-27 October 23, 2026 Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Second Amendment Directions, 2026 Please refer to Chapter IV of the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Directions, 2025 dated November 28, 2025 (hereinafter referred to as ‘the Directions’), on Minimum Capital Requirements for Operational Risk. 2. On a review, and in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified. 3. (i) These Directions shall be called the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Second Amendment Directions, 2026. (ii) Chapter IV of the Reserve Bank of India (Commercial Banks – Forthcoming Instructions) Directions, 2025 , on Minimum Capital Requirements for Operational Risk, along with amendments set out at Para 4 below, shall come into effect from April 1, 2027 . 4. The Amendment Directions modify the Directions as under: (i) Paragraph 29 shall be substituted by the following, namely: “The description for each of these constituents of the BI (i.e., ILDC, SC, and FC) along with the schedules of the prescribed financial statements format is provided in Table VIII. An indicative mapping of BI items with schedules and line items of the prescribed financial statements format shall be given in due course . Explanation: The mapping provided is indicative and where the measurement, classification or presentation of an item under the ‘ Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 ’ differs from that prescribed under these Directions, the banks shall ensure that items used for computation of ORC are in accordance with these Directions and consistent with the ‘description’ and ‘sub-items’ prescribed in Table VIII under Paragraph 29 of these Directions.” (ii) Table 8 under Paragraph 29 shall be modified as under: Table 8 BI constituents P&L or balance sheet items Description Typical sub-items [added] Indicative Mapping to specific schedules in the Balance Sheet and / or P&L Account Interest, lease and dividend Component (ILDC) Interest income Interest income from all financial assets and other interest income (includes interest rental income from financial and operating leases and profits from leased assets) (i) Interest income from loans and advances, assets available for sale, assets held to maturity, trading assets, and financial leases, and operating leases . (ii) Interest income from hedge accounting derivatives. (iii) Other interest income. (iv) Profits from leased assets. [added] (v) Rental income from operating leases. Schedule 13, 14 Interest expenses Interest expenses from all financial liabilities and other interest expenses (includes interest expense from financial and operating leases rental expenses , losses , depreciation and impairment of and losses from , operating leased assets and losses from leased assets ) (i) Interest expenses from deposits, debt securities issued, financial leases , and operating leases. (ii) Interest expenses from hedge accounting derivatives. (iii) Other interest expenses; (iv) Losses from leased assets. (v) Depreciation Rental expenses, depreciation and impairment of operating leased assets. Schedule 15, 16 Interest earning assets (Balance Sheet item) Total gross outstanding loans and advances, interest bearing securities including government securities, and leased assets (i.e., all outstanding credit obligations in the balance sheet, including credit obligations on non-accrued status. e.g., non-performing assets shall be included in interest earning assets) measured at the end of each financial year. [added] Explanation: The interest rate derivative assets that, depending on the accounting treatment, affect a bank’s interest income (as included in the interest, leases and dividend component of the business indicator) shall be included in interest earning assets. These derivative assets shall be captured at their fair value (not their notional value). The fair value used shall be positive, and a negative fair value should not be subtracted. Schedule 6, 7, 8, 9, 11 Dividend income Dividend income from investments in stocks and funds not consolidated in the bank’s financial statements, including dividend income from non-consolidated subsidiaries, associates, and joint ventures. Schedule 13, 14 Services Component (SC) Fee and commission income Income received from providing advice and services. Includes income received by the bank as an outsourcer of financial services. Fee and commission income from: (i) Securities (issuance, origination, reception, transmission, execution of orders on behalf of customer