**Executive Summary**
The Reserve Bank of India (RBI) has issued draft directions proposing a new methodology for computing the maximum eligible dividend payout. These revised directions cover prudential norms on dividend and remittance of profit for various bank types. Comments on the draft are invited until February 5, 2026.
**Key Points / Main Content**
* **Draft Directions Issued:** The RBI is releasing draft directions for public comment following a review of existing guidelines and stakeholder feedback.
* **Scope of Directions:** The draft directions cover the following:
* Commercial Banks
* Small Finance Banks
* Payment Banks
* Regional Rural Banks
* Local Area Banks
* **Comment Submission:**
* Comments/feedback on the draft directions are invited until February 5, 2026.
* Submissions can be made through the 'Connect2Regulate' section on the RBI website or by forwarding comments to the specified address or email.
**Impact Analysis**
**Commercial Banks, Small Finance Banks, Payment Banks, Regional Rural Banks, and Local Area Banks**
* **Impact:** Affected banks will need to review and understand the proposed new methodology for dividend payout.
* **Action Required:** Banks should provide feedback on the draft directions to the RBI by February 5, 2026.
Key Entities Referenced
Reserve Bank of India (Prudential Norms on Dividend and Remittance of Profit) Directions, 2026: Draft directions issued by the Reserve Bank of India regarding prudential norms on dividend and remittance of profit for banks operating in India.
Reserve Bank of India: The central bank of India, responsible for issuing these directions.
Mumbai: Location of the Reserve Bank of India's central office, where comments may be sent.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 06, 2026
RBI invites comments on the draft “Reserve Bank of India (Prudential Norms
on Dividend and Remittance of Profit) Directions, 2026”
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:
i) Reserve Bank of India (Commercial Banks - Prudential Norms on Declaration
of Dividend and Remittances of Profit) Directions, 2026
ii) Reserve Bank of India (Small Finance Banks - Prudential Norms on
Declaration of Dividend) Directions, 2026
iii) Reserve Bank of India (Payment Banks - Prudential Norms on Declaration of
Dividend) Directions, 2026
iv) Reserve Bank of India (Regional Rural Banks - Prudential Norms on
Declaration of Dividend) Directions, 2026
v) 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)
Press Release: 2025-2026/1866 Chief General Manager