Reserve Bank of India
June 28, 2019
All Scheduled Commercial Banks
(excluding RRBs, LABs, Payments Banks and Small Finance Banks)
Basel III Capital Regulations- Implementation of Leverage Ratio
Please refer to ‘Part E: Leverage Ratio Framework’ of the Master Circular- Basel III Capital Regulations, DBR.No.BP.BC.1/21.06.201/ 2015-16 dated July 1, 2015.
2. As announced in the Statement on Developmental and Regulatory Policies issued with the Second Bi-Monthly Monetary Policy Statement 2019-20 on June 6, 2019, it has been decided that the minimum Leverage Ratio shall be 4% for Domestic Systemically Important Banks (DSIBs) and 3.5% for other banks.
3. Both the capital measure and the exposure measure along with Leverage Ratio are to be disclosed on a quarter-end basis. However, banks must meet the minimum Leverage Ratio requirement at all times.
4. These guidelines shall be effective from the quarter commencing October 1, 2019.
Chief General Manager-in-Charge