Mumbai: The Reserve Bank of India (RBI) has proposed an additional leverage ratio buffer for Indian branches of global systemically important banks (G-SIBs), as part of revised capital adequacy norms aimed at aligning domestic regulations with the latest Basel standards.
Under the draft directions, a branch of a G-SIB operating in India will be required to maintain a minimum leverage ratio of 3.5 per cent, along with the leverage ratio buffer applicable to the parent global bank, including any additional buffer prescribed by its home regulator.