# RBI proposes Basel-aligned leverage ratio, tighter norms for G-SIBs

2026-08-07T18:47:36+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Reserve Bank of India has proposed new leverage ratio requirements for commercial banks, aligning Indian rules with the latest Basel Committee on Banking Supervision framework. Under the draft circular issued Friday, branches of globally systemically important banks (G-SIBs) must maintain a minimum 3.5% leverage ratio plus an applicable buffer. Domestic systemically important banks, State Bank of India, HDFC Bank and ICICI Bank, will continue to face a 4% floor. Other commercial banks keep the existing 3.5% minimum. The leverage ratio measures tier 1 capital against total exposure without risk-weighting. The RBI has invited comments until August 28 and said the amended rules, once finalised, will take effect from April 1, 2027. The proposal also introduces capital distribution constraints for G-SIB branches that fail to meet the buffer requirement and details stricter treatment of derivatives, securities financing and off-balance-sheet items.

## Coverage

- economictimes.indiatimes.com <https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-proposes-leverage-ratio-buffer-for-g-sib-branches/articleshow/133036849.cms>
- livemint.com <https://www.livemint.com/industry/banking/rbi-moves-to-tighten-bank-leverage-norms-seeks-comments-by-aug-28-11786111195211.html>

Tags: banking regulation, Basel III, capital adequacy, G-SIB, leverage ratio, RBI
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