Reserve Bank of India imposed complete restrictions on dividend payment by bank for FY 2019-20 - A reasonable dividend should be allowed out of current profits and / or reserves to maintain continuity of dividend and to support people who are dependent on earning by way of dividends. https://www.taxtmi.com/article/detailed?id=9573 The author challenges the RBI prohibition on bank dividends for FY2019 20 as disproportionate and harmful to dependent shareholders and market capitalisation. Citing the 2005 framework that ties permissible payouts to bank-specific financial metrics, the note urges permitting modest dividends-up to the average of each bank's minimum and maximum permissible payout-and limited use of reserves, to balance capital conservation with shareholder income and market confidence. en-us Mon, 07 Dec 2020 14:24:14 +0530 Mon, 07 Dec 2020 14:24:14 +0530 TaxTMI RSS Generator Reserve Bank of India imposed complete restrictions on dividend payment by bank for FY 2019-20 - A reasonable dividend should be allowed out of current profits and / or reserves to maintain continuity of dividend and to support people who are dependent on earning by way of dividends. https://www.taxtmi.com/article/detailed?id=9573 The author challenges the RBI prohibition on bank dividends for FY2019 20 as disproportionate and harmful to dependent shareholders and market capitalisation. Citing the 2005 framework that ties permissible payouts to bank-specific financial metrics, the note urges permitting modest dividends-up to the average of each bank's minimum and maximum permissible payout-and limited use of reserves, to balance capital conservation with shareholder income and market confidence. Articles Other Topics Mon, 07 Dec 2020 14:24:14 +0530 https://www.taxtmi.com/article/detailed?id=9573