The Reserve Bank has relaxed the Leverage Ratio (LR) by 4% for domestic systemically important banks (DSIB) and 3.5% for other banks. This has been done to help promote their lending activities.
The low leverage ratio will be effective from the quarter commencing from 1 October 2019. The leverage ratio, defined under Basel-III norms, is Tier-I capital as a percentage of the bank's risk.
important facts-
- 25th Governor of RBI: Shaktikanta Das,
- Office: Mumbai,
- Established: 1 April 1935, Kolkata.
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