The Reserve Bank of India issued the Reserve Bank of India (Small Finance Banks – Prudential Norms on Declaration of Dividends) Repeal Directions, 2026 on March 10, 2026. Through this notification, the RBI repealed the earlier Small Finance Banks – Prudential Norms on Declaration of Dividends Directions, 2025 issued on November 28, 2025. The repeal will take effect from Financial Year 2026–27, and the earlier framework will be replaced with revised dividend declaration directions issued on the same date. The central bank clarified that actions taken or initiated under the repealed directions will continue to remain valid and will be governed by the provisions applicable to those directions. Approvals or acknowledgments granted earlier will also remain effective. The repeal does not affect any rights, obligations, liabilities, penalties, or proceedings arising under the earlier framework. Investigations or legal actions related to past contraventions may continue as if the repealed directions had not been withdrawn, ensuring regulatory continuity while introducing the updated dividend norms.
Reserve Bank of India
RBI/DOR/2025-26/235
DOR.ACC.REC.No.424/21.02.067/2025-26 | Dated: March 10, 2026
Reserve Bank of India (Small Finance Banks – Prudential Norms on Declaration of Dividends) 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 (Small Finance Banks – Prudential Norms on Declaration of Dividends) Directions, 2025 (DOR.ACC.REC.118/21-02-067/2025-26) issued on November 28, 2025, with effect from Financial Year (FY) 2026-27. The Directions shall be replaced with Reserve Bank of India (Small Finance Banks – Prudential Norms on Declaration of Dividends) Directions, 2025 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 Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed Directions shall be deemed as governed by these Directions.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
