The Reserve Bank of India has issued draft 2026 directions for public comment to revise prudential norms on the declaration of dividends and, for commercial banks, the remittance of profits, including a new methodology for computing the maximum eligible dividend payout. The proposals follow the RBI’s review of existing guidelines on dividends and profit remittances by foreign banks operating in branch mode in India. After issuing a draft revised framework in January 2024 and considering stakeholder feedback and consultations, the RBI is now consulting on separate draft directions for commercial banks, small finance banks, payment banks, regional rural banks and local area banks. Comments are open until 5 February 2026 via the RBI’s Connect2Regulate channel.
Reserve Bank of India 2026-01-06
Reserve Bank of India launches consultation on draft 2026 directions revising dividend payout and profit remittance prudential norms
The Reserve Bank of India has released draft 2026 directions for public comment to revise prudential norms on dividend declarations and profit remittances for various banks, introducing a new methodology for calculating maximum eligible dividend payouts. Comments are accepted until 5 February 2026 through the RBI's Connect2Regulate channel.