Economy
RBI Aligns Bank Leverage Rules With Basel Standards, Sets Minimums
The RBI amended banks’ leverage-ratio framework to align with the Basel Committee’s 2017 standard.
What happened
The Reserve Bank of India issued its Eleventh Amendment Directions on October 23, 2026, replacing the leverage-ratio provisions in its 2025 directions. Domestic systemically important banks must maintain a minimum leverage ratio of 4%, while other banks must maintain 3.5%. Indian branches of global systemically important banks must maintain 3.5% plus their applicable leverage buffer.
Why it matters
Banks must calculate capital and exposure measures each quarter. G-SIB branches that miss leverage or risk-based capital requirements face minimum capital-conservation standards linked to earnings.
Source: RBI Notifications