RBI sets 4% and 3.5% leverage minimums from April 2027
Business
The Reserve Bank of India (RBI) is rolling out tougher rules for banks, starting April 2027.
These new norms mean domestic systemically important banks (D-SIB) must meet a minimum leverage ratio of 4%, while other banks must meet a minimum leverage ratio of 3.5%.
The goal? To make sure banks stay strong and stable, matching global standards set by the Basel framework.
RBI sticks with April 2027 deadline
Even though banks asked for more time, RBI is sticking with the 2027 deadline.
From then on, banks will have to check their capital levels every quarter.
The new leverage ratio can't be lowered using tricks like collateral or guarantees; it's a straightforward way to measure bank strength and keep things transparent for everyone.