RBI proposes 3.5% leverage for G-SIB branches in India
The Reserve Bank of India (RBI) is shaking things up for branches of global systemically important banks (G-SIBs) operating in India, proposing new rules that make them keep a minimum leverage ratio of 3.5%.
These branches will also have to follow extra safety buffers, including any additional buffer prescribed by its home regulator.
The idea? To keep India's banking system strong and more in line with global standards.
RBI proposes risk calculation, reporting changes
The guidelines also tweak how these banks calculate their risk, especially when it comes to things like derivatives and off-balance-sheet items.
Banks will need to share their leverage ratios every quarter and report on their capital health.
If you have got thoughts on these changes, the RBI is open for feedback until August 28, 2026.
The new rules kick in from April 1, 2027.