RBI allows banks to pay 50 pct of pre-COVID dividends on equity shares

The Reserve Bank of India has allowed banks to pay dividends on equity shares. Asking banks to proactively raise and conserve capital in wake of the second wave of Covid, the RBI has told banks to restrict dividend to 50% of what regulations allow. RBI has clarified that All banks shall ensure to meet the applicable minimum regulatory capital requirements after dividend payment. Last year, the central bank had banned banks from paying dividend after the Covid outbreak. Cooperative banks are perm...