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      Question

      Under the revised RBI dividend framework for banks, the

      maximum dividend payout is capped at: 
      A 50% of PAT Correct Answer Incorrect Answer
      B 60% of PAT Correct Answer Incorrect Answer
      C 65% of PAT Correct Answer Incorrect Answer
      D 75% of PAT Correct Answer Incorrect Answer
      E 80% of PAT Correct Answer Incorrect Answer

      Solution

      Under the RBI’s revised prudential norms for declaration of dividends, the maximum dividend payout for banks incorporated in India is capped at 75% of Profit After Tax (PAT). Dividend eligibility is also linked to the Common Equity Tier-1 (CET-1) ratio. 

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