RBI relaxed leverage ratio for banks to __________.

The Reserve Bank of India (RBI) relaxed the Leverage Ratio (LR) for banks to 3.5%. This is done to help them in order to expand their lending activities. The LR is reduced to 4% for Domestic Systemically Important Banks (D-SIBs). LR is defined under Basel-III norms, Tier 1 Capital as a percentage of the bank's exposure. It was introduced for banks post-financial crisis of 2008. The minimum requirement for LR set by the Basel Committee on Banking Supervision (BCBS) is 3%. Banks have been required to publicly disclose their Basel III leverage ratio on a consolidated basis from 1 April 2015 quarterly. LR is one of the 4 indicators under the RBI's Prompt Corrective Action (PCA) framework and an important supplement to the risk-based capital requirements.