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........