Dear NBFCs either be a Bank or ready for regulations like a Bank.
This is the fundamental stance RBI has now for NBFCs. Loudly announcing the stance RBI Director says NBFC should convert into banks. Soon after that RBI released proposed rules for conversion of NBFC into Bank. North Block now could not afford any other financial fiasco after ILFS, Yes Bank , DHFL, LVB , PMC Bank.
So now RBI Released Proposed Dividend Payout Rules for NBFC.
In this analysis we will explain these rules .
Criteria : Capital Adequacy and Leverage Ratio
B. For NBFC-ND-SI & NBFC-D
NBFCs should comply with the provisions of Section 45 IC of the
RBI Act, 1934.
NBFCs should comply with
the prevailing regulations/ guideline issued by RBI.
The proposed dividend
should be payable only out of the current year’s profit.
Reporting of Dividend to RBI
Source : RBI
Blog by Sudarshan Bhandari
Open Dmat account with us :
Note : No content of this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. The Author accepts no liability for any interpretation of article or comments on this blog being used for actual investment. This is purely an information services, and any trading done on the basis of this information is at your own, sole risk.