The Reserve Bank of India has repealed its 2025 prudential directions on the declaration of dividends by small finance banks and replaced them with a 2026 set of directions. The change takes effect from financial year 2026-27. Actions already taken or initiated under the 2025 directions will continue to be governed by that framework. Approvals or acknowledgments granted under the repealed directions are deemed to continue under the replacement directions, and the repeal does not affect existing rights, obligations or liabilities, penalties for contraventions, or related investigations, legal proceedings and remedies, which may continue as if the earlier directions had not been repealed.
Reserve Bank of India 2026-03-10
Reserve Bank of India repeals and replaces small finance bank dividend prudential norms from FY 2026-27
The Reserve Bank of India has repealed its 2025 prudential directions on dividend declarations by small finance banks, replacing them with a 2026 set of directions effective from the financial year 2026-27. Actions under the 2025 framework remain governed by it, and existing approvals and obligations continue under the new directions.