RBI asks banks to retain profit, not make any dividend payment for FY20

RBI asks banks to retain profit, not make any dividend payment for FY20

Mumbai, Dec 4: In view of the current situation caused by the COVID-19 pandemic, Reserve Bank of India on Friday asked scheduled commercial banks and co-operative banks not to make any dividends for the financial year ended March 2020. The decision is based on review of the September quarter financial performance of banks.Guidelines on the measures will be issued shortly. In April, RBI had announced that scheduled commercial banks (SCBs) and cooperative banks shall not make any dividend payouts from profits pertaining to the financial year ended March 31, 2020, until further instructions, which shall be reassessed based on financial results of banks for the quarter ending September 30, 2020.

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