RBI releases draft circular on declaration of dividend by banks and remittance of profits to Head Office by foreign bank branches in India

The Reserve Bank of India today released the draft circular on “Declaration of dividend by banks and remittance of profits to Head Office by foreign bank branches in India”. Comments on the draft circular are invited from banks, market participants, and other stakeholders by January 31, 2024.

Feedback on the draft circular may be forwarded to:

The Chief General Manager-in-Charge
Department of Regulation, Central Office
Reserve Bank of India,
12th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort,
Mumbai – 400001
or
by email

Background:

Currently, scheduled commercial banks (SCBs) declare dividend and foreign bank branches remit profit, subject to compliance with the guidelines issued on May 4, 2005 and November 6, 2003, respectively. There have been significant changes in the regulatory framework governing banks post issuance of these guidelines. Some of these developments also have implications for the guidelines on declaration of dividend and remittance of profits. In view of this, the Reserve Bank has undertaken a comprehensive review of the extant regulations on declaration of dividend and remittance of profits.

(Yogesh Dayal)     
Chief General Manager