If you invest in bank stocks or depend on dividend income, then this new proposal of RBI is very important for you. RBI has suggested that banks will be able to give only a maximum of 75% of their adjusted profit as dividend, whereas earlier this limit was 40%. The main reason for this is to make the banking system more safe and stable. Strong banks will get flexibility, but weak banks will not be allowed to give dividends. These rules may come into effect from FY 2026-27. Dividend will remain controlled in the short term, but in the long term the system will be more secure for investors.
More Profit, yet less Dividend? Master Plan of RBI Money Live | Higher profits, yet lower dividends? RBI’s Master Plan
