RBI seeks public comments on draft prudential norms on dividend and profit remittance

The Reserve Bank of India (RBI) on January 6 invited public comments on the draft Reserve Bank of India (Prudential Norms on Dividend and Remittance of Profit) Directions, 2026. The central bank said it has reviewed the existing rules governing the declaration of dividends and remittance of profits by foreign banks operating in branch mode in India.

An earlier draft of the revised framework was issued for public consultation on January 2, 2024. The RBI said based on feedback and consultations with stakeholders, it is now issuing fresh draft directions that propose a new method for calculating the maximum eligible dividend payout.

The draft directions apply to commercial banks, small finance banks, payment banks, regional rural banks and local area banks. Public comments on the draft have been invited until February 5, 2026, and can be submitted through the ‘Connect2Regulate’ section on the RBI’s website.

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