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RBI Dividend Framework 2026
March 31 , 2026
12 hrs 0 min
14
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- Reserve Bank of India revised the bank dividend framework and introduced new prudential norms effective from Financial Year 2026–27.
- The aim is to safeguard the banking system by maintaining strong capital buffers and preventing financial risks.
- The new rules replace the 2025 framework to better align dividend payouts with the financial strength and stability of banks.
- Banks cannot pay dividends above 75% of their profit after tax to ensure adequate capital retention.
- Dividend decisions will depend on factors like capital adequacy ratio, profitability levels and asset quality indicators.
- Foreign banks can remit profits to their parent companies without prior approval, but must follow regulatory conditions.
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