RBI Overhauls Dividend Payout Regulations for Commercial Banks Effective FY27
Dividend declarations will now be primarily determined by the Common Equity Tier 1 (CET-1) ratio instead of the previous Capital to Risk-Weighted Assets Ratio (CRAR) and NPA metrics.
Under the revised norms, banks with a CET-1 ratio of 8% or lower are strictly prohibited from declaring any dividends.
The maximum dividend payout for Indian incorporated banks has been capped at 75% of the Profit After Tax (PAT) for the respective financial year.
Perspective: This shift emphasizes the importance of core capital strength over general capital adequacy, ensuring banks maintain a robust buffer before rewarding shareholders.
Key Facts / Static GK
Q Practice Quiz — 16 March 2026
1. Who administered the oath of office to Syed Ata Hasnain as the Governor of Bihar?
Explanation: As per the Constitution of India, the oath of office to a Governor is administered by the Chief Justice of the High Court of that state. In this case, Chief Justice Sangam Kumar Sahoo of the Patna High Court administered the oath.
2. Which Union Ministry was primarily responsible for organizing the 'Purple Fest' at Rashtrapati Bhavan?
Explanation: The 'Purple Fest' is an initiative focused on Divyangjan (Persons with Disabilities), which falls under the jurisdiction of the Ministry of Social Justice and Empowerment.
3. What is the new revised fee for the NHAI FASTag Annual Pass for the financial year 2026-27?
Explanation: The NHAI has revised the FASTag Annual Pass fee from ₹3,000 to ₹3,075 for the financial year 2026-27, effective April 1, 2026.
4. Tuticorin Airport, which was recently renamed Thoothukudi Airport, is located in which Indian state?
Explanation: The airport is located in the state of Tamil Nadu. The renaming was approved to reflect the local name of the city, Thoothukudi.
5. The festival of 'Chapchar Kut' is associated with which Indian state?
Explanation: Chapchar Kut is the most important traditional spring festival of the Mizo people in Mizoram, celebrated after the completion of jhum cultivation tasks.
Keep Learning with PrepZen
Get daily current affairs, live mock tests, mistake bank, vocab builder & more — all free on your phone.
More from BANKING & FINANCE
- South Indian Bank Integrates Digital Loan Against Mutual Funds and EPF Payment Services
- Public and Private Sector Banks Report Significant Earnings from Non-Core Fees and Penalties
- SEBI Establishes Expert Panel Chaired by Dr. D.B. Phatak for Future-Ready Securities Market Technology
- RBI Observes 6th Digital Payments Awareness Week to Foster Safe Transaction Habits
- SEBI Caps Mutual Fund Intraday Borrowings at 20% of Net Assets to Manage Liquidity