Mumbai, Aug. 8 -- 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.

The leverage ratio measures a bank's Tier 1 capital against its overall exposure and acts as a safeguard against excessive borrowing and build-up of leverage.

The RBI has retained the ...