RBI issues final leverage ratio rules for banks

What happened: The RBI issued final leverage ratio rules for banks, following a draft released on August 7 that drew stakeholder comments until August 28. The rules take effect from April 1, 2027. Key numbers: Effective date April 1, 2027. Draft issued August 7, comments until August 28. Why it matters: The RBI rejected banks' proposal to align the G-SIB leverage ratio with the Basel minimum of 3%. The final rules also retain capital distribution constraints for G-SIB branches that fail to meet buffer requirements.

The RBI issued final leverage ratio rules for banks, following a draft released on August 7 that drew stakeholder comments until August 28. The rules take effect from April 1, 2027.

The RBI rejected banks' proposal to align the G-SIB leverage ratio with the Basel minimum of 3%. The final rules also retain capital distribution constraints for G-SIB branches that fail to meet buffer requirements.