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    Question

    The ceiling for declaration of dividend (dividend payout ratio) for NBFCs who do not accept public deposits and funds is _______.

    A 60% Correct Answer Incorrect Answer
    B 50% Correct Answer Incorrect Answer
    C 40% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer
    E No ceiling required Correct Answer Incorrect Answer

    Solution

    The guidelines for declaration of dividend shall be applicable to all NBFCs regulated by RBI as below: (a) Applicable NBFCs as defined in Paragraph 2(2) of Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016; and (b) Applicable NBFCs as defined in Paragraph 2(2) of Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. These guidelines shall be effective for declaration of dividend from the profits of the financial year ending March 31, 2022 and onwards.

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