RBI Seeks Industry Feedback on Prudential Norms: Commercial Banks Invited to Review Key Capital Adequacy Amendments

RBI Seeks Industry Feedback on Prudential Norms: Commercial Banks Invited to Review Key Capital Adequacy Amendments

RBI Seeks Industry Feedback on Prudential Norms: Commercial Banks Invited to Review Key Capital Adequacy Amendments​

The Reserve Bank of India (RBI) has launched a crucial consultation process, inviting feedback from the financial industry on the draft "Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026." This move signifies an ongoing refinement of regulatory frameworks designed to bolster banking stability and align Indian banks with international standards.

Regulatory Focus: Implementing Global Leverage Ratio Framework​

The proposed amendment aims to modify 'Chapter VII: Leverage Ratio framework' within the existing Prudential Norms on Capital Adequacy Directions, 2025. This direction is pivotal as it intends to implement the latest leverage ratio framework that has been established by the Basel Committee on Banking Supervision.

This update underscores the RBI’s commitment to maintaining robust capital adequacy standards across all commercial banks operating in India. By adopting the 'Leverage Ratio 2017 Standard,' the regulator is ensuring Indian banking practices remain globally competitive and resilient against financial shocks.

Public Consultation Process Details​

The RBI has set a clear timeline for stakeholders interested in reviewing the draft. Interested parties are invited to submit their comments and feedback on the Amendment Directions up until August 28, 2026. This extended period allows industry experts time to thoroughly review the proposed changes.

Feedback can be submitted electronically via the designated link under the 'Connect 2 Regulate' section of the RBI’s official website. Alternatively, submissions can be directed physically or through email correspondence.

Submission Guidelines for Industry Stakeholders​

The Chief General Manager, Balance Sheet Group Department of Regulation at the Central Office, Reserve Bank of India, is the designated recipient for physical feedback. Correspondence must be submitted to the Mumbai office located on Shahid Bhagat Singh Marg.

For digital submissions, the appropriate email address should be used, provided that the subject line strictly reads 'Feedback on Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026'. This structured approach ensures that all comments are channeled and reviewed efficiently by the central regulator.
 

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Editorial Note

This news article was written and created by Deepali, and published on IST.
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