RBI Overhauls Bank Dividend Rules: New Framework from FY27, Caps Payouts

• RBI scraps 2025 dividend framework, introduces new 2026 directions effective FY27.
• Indian banks capped at 75% of profit after tax for dividend payouts under revised norms.
• Foreign banks can remit profits without prior RBI approval, excluding exceptional or one-time gains.
• New norms link payouts to capital adequacy, profitability, and asset quality.
• Aims to align profit distribution with financial health and safeguard capital buffers in the banking system.