RBI issues guidelines on the implementation of Leverage Ratio 2017 Standard
Reported by Reserve Bank of India, not nibnow. We are not the publisher of this story, only the source is.
The new leverage ratio rules will shape how Indian commercial banks manage capital, potentially influencing credit availability and financial stability.
The Reserve Bank of India had issued the draft Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026 on August 7, 2026, inviting feedback from stakeholders until August 28, 2026. The draft Amendment Directions proposed to implement the latest leverage ratio framework ('Leverage Ratio 2017 Standard') issued by the Basel Committee on Banking Supervision. 2. Feedback received on the draft Directions has been examined and consequent modif
The Basel Committee on Banking Supervision issues global standards like the Leverage Ratio 2017 Standard, which national regulators such as the Reserve Bank of India adopt to ensure banks hold sufficient capital relative to their assets.
- •Banks begin complying with the new leverage ratio requirements on April 1, 2027
- •Monitoring of credit growth and loan pricing as banks adjust to the capital rules
- •Further guidance or supervisory actions from the RBI as implementation progresses