RBI Replaces Payment Banks Dividend Norms with New Directions, 2026
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/DOR/2025-26/236 · issued 10 Mar 2026 · ~1 min read
Quick answerRBI repeals 2025 dividend norms for payment banks, replacing them with new 2026 norms effective FY 2026-27.
The rule, in the simplest words
Payment banks must follow new RBI Directions, 2026, from FY 2026-27.
Payment banks must review and update dividend declaration and distribution practices to comply with new norms.
Existing actions under old Directions, 2025, remain governed by those old rules.
How it plays out — a real example
As a branch operations officer in Indore, Rohan must ensure that his payment bank follows the new RBI Directions, 2026, from FY 2026-27. This means reviewing and updating their dividend declaration and distribution practices to comply with the new norms. Rohan is responsible for ensuring that the payment bank adheres to the new Directions, 2026, to avoid any penalties or repercussions.
What changed
RBI has repealed the Reserve Bank of India (Payment Banks – Prudential Norms on Declaration of Dividends) Directions, 2025, and replaced them with new Directions, 2026, effective from Financial Year 2026-27.
What it means for you
The repeal and replacement mean that payment banks must follow the new Directions, 2026 from FY 2026-27, while existing actions under the 2025 Directions remain governed by those old rules.
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
Review and update dividend declaration and distribution practices to comply with new norms
Ensure adherence to the new Directions, 2026, from FY 2026-27
Who it affects
Payment banks
❓ Common questions
What is the effective date of the new Directions, 2026?
Financial Year 2026-27
Will the repeal affect existing approvals or acknowledgments?
No, existing approvals or acknowledgments will be deemed governed by the repealed Directions, 2025, not the new Directions, 2026
📜 Read the original circular — full text as issued by RBI
RBI/DOR/2025-26/236
DOR.ACC.REC.No.425/21.02.067/2025-26
March 10, 2026
Reserve Bank of India (Payment 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 (Payment Banks – Prudential Norms on Declaration of Dividends) Directions, 2025 (DOR.ACC.REC.136/21-02-067/2025-26) issued on November 28, 2025 , with effect from Financial Year (FY) 2026-27. The Directions shall be replaced with Reserve Bank of India (Payment 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/2025-26/236 · issued 10 Mar 2026. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 02 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13323&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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