The Reserve Bank of India has published the final amendment to its capital adequacy norms, implementing a new leverage ratio framework. The changes were proposed in response to feedback received on the draft directions between August 7 and August 28, 2026.
On August 7, 2026, the Reserve Bank of India (RBI) issued the draft Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026. During a feedback review period ending on August 28, 2026, stakeholders were invited to provide their thoughts on the proposed changes.
Having examined the feedback received, suitable modifications have been incorporated in the final Amendment Directions, which were published today. These modifications are detailed in the Annex provided with the instructions.
Effective from April 1, 2027, these new guidelines will implement the 'Leverage Ratio 2017 Standard' issued by the Basel Committee on Banking Supervision. The Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026 have been released today as Press Release 2026-2027/1376.
(Brij Raj)
Chief General Manager
Source:
Reserve Bank of India
