RBI latest direction to banks: It is believed that these guidelines have been issued in view of the possibility that the second wave of corona infection will have an adverse effect on the financial health of banks.
RBI latest direction to banks: Reserve Bank of India (RBI) has given a special decree to banks today. In its latest directive, RBI has asked banks to keep dividend payments up to 50 percent limited to conserve capital and remain flexible. According to the news of IANS, the Reserve Bank has also issued a notification for all commercial banks and co-operative banks.
Guidelines regarding dividend payment
According to the news, in this notification, the guidelines issued by Reserve Bank of India on dividend payments, said that the speed at which the second wave of coronavirus infection is increasing, threatens to create conditions like economic uncertainty. Has gone. In such a situation, it is very important for the banks to remain strong. Therefore, they should protect their capital by taking necessary steps beforehand. Also, any fear of loss of capital or fear of loss should be minimized.
Conditions on dividend payment
A guideline issued by the Reserve Bank of India in this regard states that banks can pay dividends to shareholders for the financial year ended 31 March 2021, if they so desire, But the condition for this is that this dividend should not be more than 50 percent of the pay-out ratio.
Banks did not pay the dividend last year.
According to the circular of the central bank, commercial banks can pay 50 percent dividend i.e. dividend as compared to the earlier level of Kovid. Explain that due to the guidelines of the Reserve Bank of India, banks did not pay the dividend last year. It is believed that these guidelines have been issued in view of the possibility that the second wave of Corona infection will have an adverse effect on the financial health of banks.
