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RBI lays down stringent dividend distribution formulae for NBFCs
RBI said that deposit taking NBFCs and systemically important non-deposit taking NBFCs should have CRAR of at least 15% for the last three years. NBFC with minimum 15% capital adequacy and NPA below 6% for three years will be eligible to declare dividend from this fiscal onwards.
In a graded dividend payout format, a better managed NBFC with less than 4% net NPA can still become eligible for dividend distribution even if the minimum capital and leverage norms are not met for the previous two years.
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