30-07-2021 | 15:21 PM
New Dividend Payout Norms for NBFCs
• The Reserve Bank of India (RBI) has issued guidelines that spell out the eligibility criteria for non-banking finance companies (NBFCs) to declare dividends.
• Board of directors will consider the proposals for dividend. They will take into account the supervisory findings of the Reserve Bank (National Housing Bank for HFCs) on divergence in classification and provisioning of non-performing assets (NPAs).
• Board will also ensure that the total dividend proposed for the financial year does not exceed ceilings as specified in these guidelines.
• A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956. It is a company which has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner
