RBI

RBI prohibits banks from dividend declaration for FY ended 31.03.2020

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 >>

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