RBI proposes revised leverage ratio norms aligned with Basel standards
What happened
The Reserve Bank of India has issued draft amendment directions updating the leverage ratio framework for commercial banks to align with the Basel Committee's 2017 standard. Under the proposal, globally systemically important banks operating in India would be subject to a minimum 3.5% leverage ratio requirement alongside a specific buffer.
Why it matters
The proposed framework updates leverage standards for major lenders operating in India. Affected banks will need to evaluate their capital positions, which could influence balance sheet expansion and asset-liability management under the amended prudential rules.
Bigger picture
The proposal continues India's ongoing effort to align domestic banking regulations with international prudential standards, integrating modernized global frameworks on bank capital and risk management into domestic oversight.
Watch next
Stakeholders and industry participants have until August 28, 2026, to submit feedback on the draft directions via the Reserve Bank of India's website or directly to its Department of Regulation.