MANU/RMIC/0057/2021
Ministry : Reserve Bank of India
Department/Board : Department of Regulation
Circular No. : DOR.ACC.REC.7/21.02.067/2021-2022
RBI/2021-2022/23
Date : 22.04.2021
Notification/ Circulars Referred : Circular DOR.BP.BC.No.29/21.02.067/2020-21 dated December 4, 2020 MANU/RMIC/0162/2020;Circular DBOD.NO.BP.BC.88/21.02.067/2004-05 dated May 4, 2005 MANU/DBOD/0032/2005
Citing
Reference :
Circular DOR.BP.BC.No.29/21.02.067/2020-21 dated December 4, 2020 MANU/RMIC/0162/2020 Referred
Circular DBOD.NO.BP.BC.88/21.02.067/2004-05 dated May 4, 2005 MANU/DBOD/0032/2005 Referred
All Commercial Banks and Cooperative Banks,
Madam / Sir,
Declaration of dividends by banks
Please refer to our circular DOR.BP.BC.No.29/21.02.067/2020-21 dated December 4, 2020, and other associated circulars on the captioned subject.
2. In view of the continuing uncertainty caused by the ongoing second wave of COVID-19 in the country, it is crucial that banks remain resilient and proactively raise and conserve capital as a bulwark against unexpected losses. Therefore, while allowing banks to pay dividend on equity shares, it has been decided to review the dividend declaration norms for the year ended March 31, 2021 as below.
Commercial Banks
3. In partial modification of the instructions contained in circular DBOD.NO.BP.BC.88/21.02.067/2004-05 dated May 4, 2005, banks may pay dividend on equity shares from the profits for the financial year ended March 31, 2021, subject to the quantum of dividend being not more than fifty percent of the amount determined as per the dividend payout ratio prescribed in pa........