RBI sets final leverage ratio rules for banks from April 2027
In short
The Reserve Bank of India set final leverage ratio rules for banks, starting April 1, 2027. Domestic systemically important banks must keep at least 4%, and other commercial banks must keep 3.5%.
This matters for banks because it affects how much capital they must hold against their balance sheets. The reporting does not spell out the exact rules for branches of global systemically important banks.
What the reporting says
The Reserve Bank of India announced final leverage ratio requirements for commercial banks, effective April 1, 2027, after reviewing bank feedback and making changes. Domestic systemically important banks must keep a 4% minimum leverage ratio, while other commercial banks need 3.5%. The reporting also says branches of global systemically important banks will face specific requirements, but it does not detail those thresholds.
Why it matters
The Reserve Bank of India finalized leverage ratio rules for commercial banks, to take effect on April 1, 2027, after reviewing feedback and making modifications. Domestic systemically important banks must maintain a 4% leverage ratio, while other commercial banks need 3.5%. The reporting also notes additional requirements for branches of global systemically important banks, but does not provide the exact thresholds or explain the size of the impact on lending or capital plans.