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 >>
- A Notification acquires force of law only upon its publication in Official Gazette – SC
- Case remitted to verify claim of RTO liaisoner that cash deposited belonged to vehicle owners
- J&K Bank Ltd. invites on-line applications for empanelment as Stock Auditors
- Broken period interest on securities held as stock-in-trade is revenue expenditure
- Reassessment on basis of borrowed belief of Anti-Corruption Bureau quashed
