The Reserve Bank had undertaken a review of the extant guidelines on the prudential norms on declaration of dividend and remittance of profits by foreign banks operating in branch mode in India. Accordingly, a draft of the revised framework was issued for public comments on January 2, 2024. However, based on the stakeholder feedback and consultations, the following draft Directions proposing a new methodology for computing the maximum eligible dividend payout are being issued for public comments:

1. Reserve Bank of India (Commercial Banks - Prudential Norms on Declaration of Dividend and Remittances of Profit) Directions, 2026

2. Reserve Bank of India (Small Finance Banks - Prudential Norms on Declaration of Dividend) Directions, 2026

3. Reserve Bank of India (Payment Banks - Prudential Norms on Declaration of Dividend) Directions, 2026

4. Reserve Bank of India (Regional Rural Banks - Prudential Norms on Declaration of Dividend) Directions, 2026

5. Reserve Bank of India (Local Area Banks - Prudential Norms on Declaration of Dividend) Directions, 2026

The comments on the draft Directions are invited till February 5, 2026. The comments / feedback may be submitted through the link under the ‘Connect2Regulate’ Section available on the Reserve Bank’s website. Alternatively, the comments may be forwarded to

The Chief General Manager, Balance Sheet Group
Department of Regulation, Central Office
Reserve Bank of India,
13th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort,
Mumbai – 400001
or
by e-mail

(Brij Raj)           
Chief General Manager

RBI draft Directions on maximum eligible dividend payout methodology for banks; comments invited until February 5, 2026. The Reserve Bank has issued draft Directions proposing a revised methodology to compute the maximum eligible dividend payout and updated prudential norms on declaration of dividend and remittance of profit for Commercial Banks, Small Finance Banks, Payment Banks, Regional Rural Banks and Local Area Banks; comments are invited until February 5, 2026 via the 'Connect2Regulate' link or by post/email to the Chief General Manager, Balance Sheet Group, Department of Regulation.