The RBI is seeking public feedback on the draft Prudential Norms concerning Dividend and Remittance of Profit Directions, 2026, which will impact a range of banks. Comments are accepted until February 5, 2026, via Connect2Regulate.
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On January 6, the Reserve Bank of India (RBI) called for public feedback on its draft directions for the Prudential Norms on Dividend and Remittance of Profit, set for 2026. The central bank noted that it has assessed the current regulations concerning dividend declarations and profit remittances by foreign banks functioning in branch mode within India.
A prior version of the revised framework was put forth for public discussion on January 2, 2024. Following stakeholder consultations and feedback, the RBI is now releasing new draft directions that suggest a revised approach for determining the maximum permissible dividend payout.
These draft guidelines pertain to commercial banks, small finance banks, payment banks, regional rural banks, and local area banks. Public input is open until February 5, 2026, and submissions can be made via the ‘Connect2Regulate’ section on the RBI’s official site.
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(Edited by : Shoma Bhattacharjee)
