RBI/2018-19/225
DBR.BP.BC.No.49/21.06.201/2018-19

June 28, 2019

All Scheduled Commercial Banks
(excluding RRBs, LABs, Payments Banks and Small Finance Banks)

Dear Sir/Madam,

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.

Yours faithfully,

(Saurav Sinha)
Chief General Manager-in-Charge