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    Question

    As proposed by the Reserve Bank of India, the  maximum

     dividend payout cap for banks may be raised to what percentage of net profit?  
    A 40% Correct Answer Incorrect Answer
    B 50% Correct Answer Incorrect Answer
    C 60% Correct Answer Incorrect Answer
    D 70% Correct Answer Incorrect Answer
    E 75% Correct Answer Incorrect Answer

    Solution

    Detailed Explanation:  
    The RBI has proposed revising prudential norms to raise the  maximum  dividend payout cap to 75% of net profit , from the existing 40%. The proposal links dividend payouts to capital strength, particularly CET-1 ratios, to ensure capital conservation while allowing well-capitalised banks to reward shareholders.  

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