The Reserve Bank of India has invited public comments on draft Directions titled “Prudential Norms on Declaration of Dividend and Remittance of Profit, 2026,” issued on 6 January 2026. These draft norms follow a comprehensive review of the existing guidelines governing dividend declaration and profit remittance, particularly for foreign banks operating in branch mode in India. Based on stakeholder feedback received on an earlier draft released in January 2024, the RBI has now proposed a revised framework introducing a new methodology for computing the maximum eligible dividend payout. Separate draft Directions have been issued for commercial banks, small finance banks, payment banks, regional rural banks, and local area banks, reflecting differentiated regulatory treatment across banking categories. Stakeholders have been invited to submit comments by 5 February 2026 through the RBI’s Connect2Regulate portal, by post, or via email. The initiative signals RBI’s intent to strengthen prudential oversight while ensuring consistency and transparency in dividend distribution norms.
Reserve Bank of India
Date : Jan 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:
iii. Reserve Bank of India (Payment 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)
Chief General Manager
Press Release: 2025-2026/1866
