The Reserve Bank of India has repealed its 2025 directions on prudential norms for Local Area Banks declaring dividends and replaced them with new 2026 directions. Both the repeal and the replacement take effect from financial year 2026-27. Actions already taken or initiated under the repealed directions will continue to be governed by those earlier provisions. Approvals or acknowledgments granted under the repealed framework will be treated as governed by the new directions. The repeal also does not affect any existing rights, obligations or liabilities, or any penalties, forfeitures, punishments, investigations, legal proceedings or remedies linked to contraventions under the earlier directions.
Reserve Bank of India 2026-03-10
Reserve Bank of India replaces Local Area Banks dividend prudential norms with new directions from FY 2026-27
The Reserve Bank of India has repealed its 2025 directions on prudential norms for Local Area Banks declaring dividends, replacing them with new 2026 directions effective from the financial year 2026-27. Actions under the repealed directions remain governed by those provisions, while approvals will be treated under the new framework. Existing rights, obligations, and legal proceedings remain unaffected by the repeal.