RBI prohibits banks from dividend declaration for FY ended 31.03.2020
RBI prohibits banks from dividend declaration
RBI has prohibited banks from making any further dividend declaration/payouts from the profits pertaining to the financial year ended March 31, 2020 until further instructions.
In India, Banks have been granted general permission to declare dividends, subject to compliance with the RBI guidelines. As per Notification issued by the RBI, the said restriction, has been necessitated by heightened uncertainty caused by COVID-19.
The step was taken to ensure that that banks could conserve capital to retain their capacity to support the economy and absorb losses.
It is stated that the restriction shall be reassessed by the Reserve Bank based on the financial results of banks for the quarter ending September 30, 2020.
Read RBI Notification Click Here >>
- AO is under an obligation to assign reasons for rejecting explanation of the assessee
- CBIC issues SoP for clearance of imported goods through Foreign Post Offices
- Sale deed executed with full knowledge of only part consideration paid, not void – SC
- No fault in serving notice to last known address when PAN data was not updated – ITAT
- Investment by firm through capital introduced by partners cannot be treated as unexplained
