New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    The ceiling for declaration of dividend (dividend payout

    ratio) for NBFCs who do not accept public deposits and funds is _______.
    A 60% Correct Answer Incorrect Answer
    B 50% Correct Answer Incorrect Answer
    C 40% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer
    E No ceiling required Correct Answer Incorrect Answer

    Solution

    The guidelines for declaration of dividend shall be applicable to all NBFCs regulated by RBI as below: (a) Applicable NBFCs as defined in Paragraph 2(2) of Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016; and (b) Applicable NBFCs as defined in Paragraph 2(2) of Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. These guidelines shall be effective for declaration of dividend from the profits of the financial year ending March 31, 2022 and onwards.

    Practice Next