Question
RBI has suggested a relaxation of rules regarding
dividend distribution: 1. A commercial bank should have a minimum total capital adequacy of 11.5 % 2. For a small finance bank and payment banks it has been set at 15 %Â 3. For local area banks and regional rural banks it has been set at 12 % Which of the following statements is/are correct?Solution
A commercial bank should have a minimum total capital adequacy of 11.5 per cent to be eligible for declaring dividend, while the same for a small finance bank and payment banks has been set at 15 per cent, and 9 per cent for local area banks and regional rural banks.
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