Reserve Bank of India revises leverage ratio rules in capital adequacy guidelines for commercial banks
Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026
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The Reserve Bank of India issued the Eleventh Amendment Guidelines on Prudential Norms for Capital Adequacy of Commercial Banks, revising the minimum leverage ratio requirements, capital conservation constraints, and rules for calculating and disclosing risk exposures. The minimum leverage ratio is 4% for domestic systemically important banks and 3.5% for other banks; branches in India of global systemically important banks must meet 3.5% plus the applicable leverage ratio buffer. The amended guidelines will take effect on 1 April 2027.
The revision brings the minimum leverage ratio requirements for Indian commercial banks, capital conservation constraints for G-SIB branches, and risk exposure calculation rules under one framework, making it easier to compare them with prudential regulatory requirements.
Source:Reserve Bank of India — Notifications · rbi.org.in