RBI Issues Norms on Dividend Declaration by Banks

On 2nd January, 2024, the Reserve Bank of India (RBI) issued draft norms on declaring bank dividends, laying down eligibility criteria and guidelines on board oversight.

These norms have been reviewed in the light of implementation of Basel III standards, the revision of the prompt corrective action (PCA) framework, and the introduction of differentiated banks.

About the Norms

Eligibility Criteria for Banks

Banks should meet the following prudential requirements to be eligible to declare dividends or remit profits:

  • Capital Adequacy: A commercial bank should have a minimum total capital adequacy of 11.5 per cent to be eligible for declaring dividend, while ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Economy Watch