RBI updates 19-25 October 2026: leverage ratio and op risk rules

Commercial banks must apply the Leverage Ratio 2017 Standard from 1 April 2027, with a 4% minimum for D-SIBs and 3.5% for other banks, plus quarterly disclosure in Templates LR1 and LR2.

The Basel III Standardised Approach for operational risk capital takes effect on 1 April 2027 for commercial banks, excluding small finance, payments and regional rural banks.

Amendment directions removed the limits on non-option derivative contracts for commercial banks and small finance banks, with immediate effect.

MPC minutes for 5-7 October record a 25 bps repo hike to 5.50% and a shift to a calibrated tightening stance, with 2026-27 CPI inflation projected at 5.2%.

Puducherry Co-operative Urban Bank was placed under Section 35A directions for six months, capping withdrawals at ₹5,000 per depositor. Directions on Konark Urban and Suri Friends' Union co-operative banks were extended by three months.

FEMA compounding for overseas investment, borrowing, lending and guarantee contraventions now goes to select regional offices. Regulated entities must also update three amended entries on the UNSC ISIL and Al-Qaida sanctions list.

Market operations included VRR repo auctions at cut-offs of 5.51% to 5.58%, a ₹33,000 crore G-sec sale, a T-bill auction with no bids accepted, state loan auctions and a ₹14,425 final redemption price for SGB 2018-19 Series-II.