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RBI Repeals 2025 Dividend Norms for Small Finance Banks

No longer current — replaced by Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividend and Remittance of Profit
Source: Reserve Bank of India · RBI/DOR/2025-26/235 · issued 10 Mar 2026 · ~1 min read
Quick answerRBI has repealed the 2025 dividend directions for Small Finance Banks, replacing them with new 2026 directions effective FY 2026-27. Existing actions under the old rules remain valid. Banks must now follow the updated prudential norms for dividend declarations.

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The Reserve Bank of India repealed its earlier Small Finance Banks dividend directions issued on November 28, 2025, replacing them with new directions dated March 10, 2026, effective from FY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 Any actions taken under the repealed directions continue to be governed by the old provisions, and all approvals or acknowledgments remain valid.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.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Small Finance Banks, Compliance officers at Small Finance Banks, Finance departments of Small Finance Banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

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Yes, any actions, approvals, or acknowledgments under the repealed 2025 directions continue to be governed by those provisions and remain valid.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded by Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Div
📜 Read the original circular — full text as issued by RBI
RBI/DOR/2025-26/235 DOR.ACC.REC.No.424/21.02.067/2025-26 March 10, 2026 Reserve Bank of India (Small Finance Banks – Prudential Norms on Declaration of Dividends) Repeal Directions, 2026 The Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby repeals the Reserve Bank of India (Small Finance Banks – Prudential Norms on Declaration of Dividends) Directions, 2025 (DOR.ACC.REC.118/21-02-067/2025-26) issued on November 28, 2025 , with effect from Financial Year (FY) 2026-27. The Directions shall be replaced with Reserve Bank of India (Small Finance Banks – Prudential Norms on Declaration of Dividends) Directions, 2026 issued on March 10, 2026 , with effect from FY 2026-27. 2. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed Directions shall be deemed as governed by these Directions. Further, the repeal of these Directions shall not in any way prejudicially affect: (1) any right, obligation or liability acquired, accrued, or incurred thereunder; (2) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; and (3) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed. (Sunil T S Nair) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/235 · issued 10 Mar 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13322&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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