**Policy Summary:**
This circular, DOR.BP.BC.No.2921.02.067/2020-21, issued by the Reserve Bank of India (RBI) on December 4, 2020, addresses the declaration of dividends by all commercial and cooperative banks. Citing ongoing stress and heightened uncertainty due to COVID-19, the RBI has decided that banks shall not make any dividend payment on equity shares from the profits pertaining to the financial year ended March 31, 2020. This measure is intended to further strengthen banks' balance sheets, conserve capital to support the economy, and absorb potential losses, while simultaneously supporting lending to the real economy. The circular references an earlier communication, DOR.BP.BC.No.64/21.02.067/2019-20 dated April 17, 2020, on the same subject. For further information, Usha Janakiraman, Chief General Manager, at cgmicdorrbi.org.in can be contacted. The Department of Regulation, Central Office of RBI can be reached at Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001. Tel: 022 2260 1000, Fax: 022 2270 5691.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Commercial Banks: Banks that provide services to businesses and individuals.
Cooperative Banks: Financial entities established on a cooperative basis.
COVID-19: The global pandemic that caused economic stress and uncertainty.
Usha Janakiraman: Chief General Manager at the Reserve Bank of India.
Mumbai, Maharashtra: City in India where the Central Office of the Department of Regulation is located.
DOR.BP.BC.No.29/21.02.067/2020-21: Reference number of the circular issued by the Reserve Bank of India regarding declaration of dividends by banks.
DOR.BP.BC.No.64/21.02.067/2019-20: Reference number of the previous circular regarding declaration of dividends by banks dated April 17, 2020.
भारतीय �रजव र् ब�क
RESERV E BANK O F INDIA
www.rbi.org.in
RBI/2020-21/75
DOR.BP.BC.No.29/21.02.067/2020-21 December 4, 2020
All Commercial Banks and All Cooperative Banks,
Madam / Dear Sir,
Declaration of dividends by banks
Please refer to our circular DOR.BP.BC.No.64/21.02.067/2019-20 dated April 17,
2020, on the captioned subject.
2. In view of the ongoing stress and heightened uncertainty on account of COVID-19,
it is imperative that banks continue to conserve capital to support the economy and
absorb losses. In order to further strengthen the banks’ balance sheets, while at the
same time support lending to the real economy, it has been decided that banks shall
not make any dividend payment on equity shares from the profits pertaining to the
financial year ended March 31, 2020.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager
िविनयमनिवभागक��ीय कायार्लय व�और व� मंिजल क��ीयकायार्लय भवन शहीद भगत�संहमागर्फोटर्मबुं ई
दरू भाष फैक्स ईमेल cgmicdor@rbi.org.in
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_____________________________________________________________________________________________________________________________________
Department of Regulation, Central Offic:e 0, 1222th- 2a2n6d0 1130th0 F0lo or, C:e 0n2tr2a-l 2O2f7fic0e5 B6u9i1ld in-g, S:hahid Bhagat Singh Marg , Fort, Mumbai- 400 001
Tel: 022- 2260 1000 Fax: 022-2270 5691 email: cgmicdor@rbi.org.in
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