RBI declares that banks shall not make dividend for F.Y. ended March 31, 2020

Apr 21, 2020 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Reserve Bank of India (RBI) on April 17, 2020, has decided that all banks shall not make any further dividend payouts from the profits pertaining to the financial year ended March 31, 2020. RBI had granted banks to declare dividends as per the guidelines laid down in Circular No. DBOD.NO.BP.BC.88/21.02.067/2004-05 dated May 04, 2005.

Due to the outbreak of COVID-19 pandemic, it is important that banks conserve capital to retain their capacity to support the economy and absorb losses. Thus, banks are requested not to make any further dividend. This restriction shall be reassessed by the Reserve Bank based on the financial results of banks for the quarter ending September 30, 2020.

[RBI Notification No. DOR.BP.BC.No.64/21.02.067/2019-20]


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