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RBI issues notification to banks regarding payment of dividends

Given the intensity of the ongoing COVID-19 wave, the RBI has issued a notification to all commercial and co-operative banks, directing them to restrict dividend payouts to 50%. Banks can pay dividend on equity shares from the profits for the financial year ending March 31, 2021, subject to the quantum of dividend being not more than fifty percent of the amount determined as per the dividend payout ratio. Cooperative banks will be permitted to pay dividend on equity shares from the profits of the financial year. All banks will continue to be required to meet the applicable minimum regulatory capital requirements after dividend payment.

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RBI directs transition from LIBOR

The Reserve Bank of India (RBI) has directed banks to transition from the London Interbank Offered Rate (LIBOR). The regulator has encouraged banks and financial institutions to cease entering into ne