What changed
The Reserve Bank of India repealed the 2025 dividend directions (issued November 28, 2025) and issued fresh 2026 directions on March 10, 2026, effective from FY 2026-27. The new directions replace the old framework entirely, though all actions, approvals, and acknowledgments under the repealed directions continue to be governed by the old provisions.
What it means for you
Banks must now align their dividend declaration and profit remittance policies with the new 2026 directions from FY 2026-27 onwards. Any rights, obligations, or penalties incurred under the 2025 directions remain unaffected, ensuring continuity and legal certainty. Lenders should review the new 2026 directions for any changes in prudential norms.
What you must do
- Review the new 2026 dividend directions to understand updated prudential norms for FY 2026-27.
- Ensure dividend declaration and profit remittance processes comply with the 2026 directions from the start of FY 2026-27.
- Maintain records of any approvals or acknowledgments obtained under the repealed 2025 directions as they remain valid.
- Update internal policies and board-approved dividend frameworks to reflect the new regulatory requirements.
Who it affects
All commercial banks in India, Bank boards and dividend committees, Compliance and finance departments of banks
What happens to dividend approvals granted under the 2025 directions?
All approvals or acknowledgments granted under the repealed 2025 directions remain valid and are deemed to be governed by the new 2026 directions.
From when are the new 2026 directions effective?
The new directions are effective from Financial Year 2026-27, replacing the 2025 directions from that date.
Are any penalties or legal proceedings under the old directions affected?
No. Any penalty, forfeiture, punishment, investigation, or legal proceeding incurred under the repealed directions continues as if the old directions were still in force.