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      Question

      As proposed by the Reserve Bank of India, theĀ  maximum

      Ā dividend payout cap for banks may be raised to what percentage of net profit? Ā 
      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: Ā 
      The RBI has proposed revising prudential norms to raise theĀ  maximum Ā 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. Ā 

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