RBI Issues Final Guidelines for Basel Committee Leverage Ratio 2017 Standard
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What happened
The Reserve Bank of India has published the final 'Commercial Banks - Prudential Norms on Capital Adequacy (Eleventh Amendment) Directions, 2026.' This follows an August 2026 consultation period on draft regulations, with the final policy incorporating feedback from stakeholders.
Why it matters
The directions mandate that commercial banks adopt the Basel Committee’s Leverage Ratio 2017 framework. These regulatory requirements become formally binding for all commercial banks on April 1, 2027, superseding existing leverage standards.
Bigger picture
The mandate reflects the RBI's ongoing effort to harmonize Indian banking prudential norms with international capital adequacy standards set by the Basel Committee on Banking Supervision.
Watch next
Commercial banks must review the feedback summary in the directive's annex and finalize compliance preparations before the April 1, 2027 effective date.