What changed
The Reserve Bank of India repealed its earlier Small Finance Banks dividend directions issued on November 28, 2025, replacing them with new directions dated March 10, 2026, effective from FY 2026-27. Any actions taken under the repealed directions continue to be governed by the old provisions, and all approvals or acknowledgments remain valid.
What it means for you
Small Finance Banks must now comply with the updated 2026 dividend declaration norms from the next financial year. The repeal ensures continuity, as past actions and approvals under the 2025 directions are not affected. Banks should review the new directions to align their dividend policies and avoid any compliance gaps.
What you must do
- Review the new 2026 dividend directions and update internal policies accordingly.
- Ensure dividend declarations from FY 2026-27 comply with the latest RBI norms.
- Maintain records of any actions taken under the repealed 2025 directions for audit purposes.
- Communicate the change to relevant departments, including finance and compliance teams.
Who it affects
Small Finance Banks, Compliance officers at Small Finance Banks, Finance departments of Small Finance Banks
What is the effective date of the new dividend directions?
The new directions are effective from Financial Year 2026-27, meaning they apply to dividends declared for that year onwards.
Are actions taken under the old 2025 directions still valid?
Yes, any actions, approvals, or acknowledgments under the repealed 2025 directions continue to be governed by those provisions and remain valid.