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      Question

      Under the draft prudential norms proposed by the Reserve Bank of India, what is the maximum dividend payout that eligible banks may distribute from their net profit?

      A 40% Correct Answer Incorrect Answer
      B 50% Correct Answer Incorrect Answer
      C 60% Correct Answer Incorrect Answer
      D 75% Correct Answer Incorrect Answer
      E 90% Correct Answer Incorrect Answer

      Solution

      The Reserve Bank of India has proposed revised prudential norms allowing eligible banks to distribute up to 75% of their net profit as dividends, subject to capital adequacy and regulatory requirements. This is a significant increase from the earlier cap of 40% and is intended to reward well-capitalised banks while maintaining financial stability.

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