Reserve Bank of India repeals 2025 commercial bank dividend and profit remittance norms and replaces them from FY 2026-27

The Reserve Bank of India has repealed its 2025 prudential directions for commercial banks on declaration of dividends and remittance of profit and replaced them with the 2026 directions, effective from financial year 2026-27. From that financial year, commercial banks will be governed by the new 2026 framework for dividend payouts and profit remittances. The repeal does not unsettle actions already taken or initiated under the 2025 directions, which will continue to be governed by the earlier provisions. Approvals or acknowledgments granted under the repealed directions will be deemed to be governed by the 2026 directions. Existing rights, obligations and liabilities are preserved, along with any penalties, forfeitures, punishments, investigations, legal proceedings or remedies connected to contraventions under the repealed framework.