The Reserve Bank of India has released the Eleventh Amendment Directions, 2026 for commercial banks’ capital adequacy framework. The instructions will take effect on April 1, 2027, after the regulator reviewed feedback on its draft.
BKK Bureau, New Delhi | 25 October 2026 | 1:56 AM IST
The Reserve Bank of India has released the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026, completing the process of introducing the latest leverage ratio framework issued by the Basel Committee on Banking Supervision.
According to the RBI, the final directions follow its draft issued on August 7, 2026. The draft proposed implementation of the “Leverage Ratio 2017 Standard” and invited comments from stakeholders until August 28, 2026.
The regulator said it examined the feedback received during the consultation process and incorporated suitable modifications into the final Amendment Directions. The RBI has also provided a statement on the feedback received on the draft directions in an annex to the release.
The final directions apply to the regulatory framework governing commercial banks’ prudential norms on capital adequacy. Their stated purpose is to implement the Basel Committee’s latest leverage ratio standard, referred to by the RBI as the Leverage Ratio 2017 Standard.
The RBI said the Amendment Directions were released on October 23, 2026. The instructions will come into effect from April 1, 2027, giving the banking sector a defined date from which the final requirements will apply.
Consultation preceded final rules
The RBI’s release sets out a formal sequence for the regulatory change: publication of draft directions, a period for stakeholder feedback, examination of the responses, incorporation of modifications and release of the final directions.
The consultation began with the draft Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026, issued on August 7. Stakeholders were given until August 28 to submit feedback. The final directions were then issued after the RBI completed its review of those submissions.
The April 1, 2027 commencement date is the operative timeline specified by the regulator. The release does not announce an immediate implementation of the amended framework; instead, it identifies a future date for the instructions to take effect.
The action is part of the RBI’s prudential regulation of commercial banks and relates specifically to the capital adequacy directions named in the amendment. It also links India’s implementation to the leverage ratio framework developed by the Basel Committee on Banking Supervision.
The announcement was issued by the RBI’s Chief General Manager, Brij Raj, under press release number 2026-2027/1376.
Why it matters
The RBI has converted its draft proposal into final directions and established April 1, 2027 as the date on which the amended commercial-bank capital adequacy instructions will take effect. The release also confirms that stakeholder feedback was reviewed before the final framework was issued.
Source: Reserve Bank of India
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