The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividend and Remittance of Profit) Repeal Directions, 2026, repealing the earlier 2025 Directions with effect from FY 2026–27. The repeal replaces the previous regulatory framework governing dividend declaration and profit remittance by commercial banks with the newly issued 2026 Directions dated March 10, 2026. RBI stated that the repeal has been undertaken in the public interest to transition to an updated regulatory framework. However, the regulator clarified that actions taken, approvals granted, or proceedings initiated under the repealed 2025 Directions will continue to remain valid and governed by those provisions. The repeal does not affect any rights, obligations, liabilities, penalties, investigations, or legal proceedings arising under the earlier Directions. Such matters may continue to be enforced as if the repealed Directions were still in force. Accordingly, while the regulatory regime governing dividend declaration and profit remittance for commercial banks shifts to the 2026 Directions, existing legal consequences and enforcement actions remain protected.
Reserve Bank of India
RBI/DOR/2025-26/234
DOR.ACC.REC.No.423/21.02.067/2025-26 | Dated: March 10, 2026
Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividend and Remittance of Profit) Repeal Directions, 2026
The Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby repeals the Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividends and Remittance of Profit) Directions, 2025 (DOR.ACC.REC.87/21-02-067/2025-26) issued on November 28, 2025, with effect from Financial Year (FY) 2026-27. The Directions shall be replaced with Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividends and Remittance of Profit) Directions, 2026 issued on March 10, 2026, with effect from FY 2026-27.
2. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed Directions shall be deemed as governed by these Directions. Further, the repeal of these Directions shall not in any way prejudicially affect:
(1) any right, obligation or liability acquired, accrued, or incurred thereunder;
(2) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; and
(3) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture, or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.
(Sunil T S Nair)
Chief General Manager
