Reserve Bank of India proposes 3.5% leverage ratio for global banks

What happened
The Reserve Bank of India has issued a proposal requiring globally systemically important banks to maintain a minimum leverage ratio of 3.5%. The proposed framework also includes an additional buffer requirement beyond that baseline.
Why it matters
The rule would require affected financial institutions operating in India to adjust their capital planning and balance-sheet management to comply with stricter leverage limits.
Bigger picture
The move aligns India's banking framework with broader international regulatory standards aimed at strengthening capital adequacy for institutions critical to the global financial system.
Watch next
Watch for the release of a finalized implementation schedule and detailed regulatory guidance on how the additional leverage buffer will be calculated.