Banks allowed to pay only 50 per cent dividend – Navshakti


Banks are allowed to pay only 50 per cent dividend

New Delhi : The second wave of corona epidemic is extremely dangerous. This wave could also have an adverse effect on bank capital. With this in mind, the Reserve Bank of India has allowed banks to pay only 50 per cent dividend to properly save capital. Banks are required to pay dividends only subject to certain conditions and time limits.

The Reserve Bank has lifted all restrictions on dividends for co-operative banks. RBI pays dividends to banks in the wake of Corona epidemic

There were restrictions on. Meanwhile, the RBI has allowed banks to pay dividends with certain conditions. Corona is also a very difficult time for banks and such a situation could lead to huge financial losses for banks. Therefore, banks will have to play a very cautious role and adopt a very flexible policy in terms of capital, the RBI said. Also, before allowing banks to pay dividends in view of losses incurred by banks, the RBI had decided to issue new guidelines on dividends to be paid by banks before March 31, 2021. Accordingly, the RBI has allowed banks to pay investors a 50 per cent dividend on shares. Banks can pay dividends to investors from their profits on March 31, 2021, the end of the year. However, the RBI has clarified that the dividend should not exceed 50 per cent. The RBI has also said that the Board of Directors will be fully responsible for paying dividends to its investors or shareholders.

Tags: Co-Operative Banks, Corona Virus, New Delhi, Reserve Bank

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