News > RBI directs banks to halve dividend payouts amid 2nd Covid wave

RBI directs banks to halve dividend payouts amid 2nd Covid wave

Insight Online | 23/04/2021 05:14 PM | Click to read full article

The Reserve Bank of India (RBI) has directed the banks to restrict dividend payouts to 50 per cent in a bid to conserve capital and stay resilient.

In a notification to all the commercial and co-operative banks, RBI said that in view of the continuing uncertainty caused by the ongoing second wave of Covid-19 in the country, it is crucial that banks remain resilient and proactively raise and conserve capital as a bulwark against unexpected losses.