RBI spells out rules for NBFCs to pay dividends

The regulator said the conditions are specific to different categories of NBFCs, which will have to meet minimum capital adequacy ratios, net non-performing asset (NPA) ratios, and a few other criteria to be able to declare dividend to shareholders.

The Reserve Bank of India (RBI) on Thursday put in place certain conditions for non-banking financial companies (NBFCs) to pay dividends to shareholders from the financial year ending March 31 2022.

The RBI said a non-bank financier must report a net NPA ratio of less than 6% in each of the last three years, including as at the close of the financial year for which dividend is proposed. (Mint)

The regulator said the conditions are specific to different categories of NBFCs, which will have to meet minimum capital adequacy ratios, net non-performing asset (NPA) ratios, and a few other criteria to be able to declare dividend to shareholders.

The RBI said a non-bank financier must report a net NPA ratio of less than 6% in each of the last three years, including as at the close of the financial year for which dividend is proposed.