Current Affairs · Banking Regulations
With reference to the Commercial Banks - Prudential Norms on Declaration of Dividend and Remittance of Profit Directions, 2026, consider the following statements: I. The RBI directions link dividend declaration by commercial banks to their Common Equity Tier-1 (CET1) capital ratios. II. Under these directions, banks with a CET1 ratio of 8 per cent or below are permitted to declare dividends, subject to prior approval of the Reserve Bank of India. Which of the statements given above is/are correct?
- 1Neither I nor II
- 2Both I and II
- 3II only
- 4I only✓
Correct answer
I only
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