MINISTRY OF FINANCE
RBI Guidelines on Declaration of Dividends by Scheduled Commercial Banks
By TEAM CIRCULAR EXPRESS • 30 Sep 2026
👁 16 views
The Reserve Bank of India issued updated guidelines for scheduled commercial banks regarding the declaration of dividends. Banks must meet specific prudential requirements, including minimum CRAR and Net NPA ratios, to be eligible. The dividend payout ratio is capped at 40% and must be calculated based on net profit, excluding extraordinary items. Banks are required to ensure board oversight and report dividend details to the RBI within a fortnight of declaration. These guidelines apply to dividends declared for the accounting year ending March 31, 2005, and onwards.
purpose of issuance
Regulatory framework for bank dividends
Most Important Details
Banks must maintain a CRAR of at least 9% and Net NPA less than 7% to be eligible for dividend declaration. The dividend payout ratio is capped at 40%. Banks must report declared dividends to RBI within 14 days.
eligibility
CRAR of at least 9% for preceding two years and accounting year; Net NPA less than 7% (or 5% if CRAR is 9% for the current year).
issue for which issued
Dividend declaration policy
is it guidelines or office order, or office memorandum
Guidelines
purpose of issue
Regulatory compliance for dividend payouts
is it guidelines or circular or for some action
Circular
state other important details
Applicable from accounting year ended March 31, 2005. Violations attract penal action under Section 46 of the Banking Regulation Act, 1949.
All the Most Important details in the circular
Eligibility criteria, 40% payout cap, board oversight requirements, and mandatory reporting to RBI.
its purpose it serves
Ensuring financial stability and prudent dividend distribution by banks.
🔒 Document — view only
Regards, Circular Express
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MINISTRY OF FINANCE
RBI Guidelines on Declaration of Dividends by Scheduled Commercial Banks
By TEAM CIRCULAR EXPRESS • 30 Sep 2026
👁 16 views
The Reserve Bank of India issued updated guidelines for scheduled commercial banks regarding the declaration of dividends. Banks must meet specific prudential requirements, including minimum CRAR and Net NPA ratios, to be eligible. The dividend payout ratio is capped at 40% and must be calculated based on net profit, excluding extraordinary items. Banks are required to ensure board oversight and report dividend details to the RBI within a fortnight of declaration. These guidelines apply to dividends declared for the accounting year ending March 31, 2005, and onwards.
purpose of issuance
Regulatory framework for bank dividends
Most Important Details
Banks must maintain a CRAR of at least 9% and Net NPA less than 7% to be eligible for dividend declaration. The dividend payout ratio is capped at 40%. Banks must report declared dividends to RBI within 14 days.
eligibility
CRAR of at least 9% for preceding two years and accounting year; Net NPA less than 7% (or 5% if CRAR is 9% for the current year).
issue for which issued
Dividend declaration policy
is it guidelines or office order, or office memorandum
Guidelines
purpose of issue
Regulatory compliance for dividend payouts
is it guidelines or circular or for some action
Circular
state other important details
Applicable from accounting year ended March 31, 2005. Violations attract penal action under Section 46 of the Banking Regulation Act, 1949.
All the Most Important details in the circular
Eligibility criteria, 40% payout cap, board oversight requirements, and mandatory reporting to RBI.
its purpose it serves
Ensuring financial stability and prudent dividend distribution by banks.
🔒 Document — view only
Regards, Circular Express
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#Ministry of Finance
Extension of Tender Submission for Renovation of RSO Flat at RBI Annexe Building New Delhi
#Corrigendum#Delhi#Extension
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#Guidelines#Ministry of Finance
Pay Fixation Order for Central Water Engineering Group A Officers after Non-Functional Up-gradation, Central Water Commission
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