BLOG 23/2026 DATED 5TH APRIL 2026
In this document we have covered the select RBI notifications and directives issued during Mar 2026 and produced a gist of it. For detailed and full study, readers may refer to the link below the subject of each notification.
NOTIFICATION
RBI/2025-26/263 DOR.STR.REC.No.455/21.04.048/2025-26 dated 31.03.2026
Subject: Reserve Bank of India (Trade Relief Measures) Directions, 2026
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT26385773BD85FBE44B89940CA71BC181E54.PDF
Gist: Effective date: 31.03..2026
A RE may permit an enhanced credit period of up to 450 days for pre-shipment and post-shipment export credit disbursed till June 30, 2026.
RBI/2025-26/252 A.P. (DIR Series) Circular No. 24 dated 27.03.2026
Subject: NOP-INR position of Authorised Dealers
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/252NT27032026A320D4644CF241D48508EF8671F2C83B.PDF
Gist: Effective date: 10.04.2026
Authorised Dealers shall ensure that their NOP-INR positions in the onshore deliverable market shall be maintained within US$ 100 million at the end of each business day. Authorised Dealers shall ensure compliance with the above at the earliest but no later than April 10, 2026.
Author’s Note: NOP-INR means Net Open Position maintained in Indian Rupee. It is calculated as the difference of the Foreign currency Assets & Foreign Currency Liabilities. This is exposure of Bank in a specific Foreign Currency.
RBI/2025-26/387 DOR.ACC.REC.No.427/21.02.067/2025-26 dated 10.03.2026
Subject: Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividend and Remittances of Profits) Directions, 2026
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/387MD1003202698CBFA3D29254532B33C97C231B6F7D8.PDF
Gist: Applicable for FY 2026-27
‘Adjusted Profit After Tax (PAT)’ means PAT of the financial year for which the dividend is proposed to be paid minus 50 per cent of Net NPA as on March 31 of the financial year for which the dividend is to be paid;
A bank shall meet the following prudential requirements, to be eligible to declare dividends or remit profits.
(1) The bank was in compliance with the applicable regulatory capital requirement as at the end of the previous financial year and shall continue to be in compliance as at the end of the financial year during which the dividend is proposed to be paid.
(2) The regulatory capital of the bank shall not fall below the applicable regulatory capital requirement even after the payment of dividend.
(3) The bank incorporated in India shall have positive adjusted Profit After Tax (PAT) for the period for which the dividend is proposed.
(4) A foreign bank operating in India in the branch mode, shall have positive PAT for the period for which the profits are to be remitted to the Head Office.
(5) The bank shall not be under any explicit restrictions for declaration of dividends or remittance of profits from the Reserve Bank or any other authority.
Quantum of dividend payable:
A bank incorporated in India which satisfies the eligibility criteria laid down in above, may declare and pay dividend up to the limits prescribed below, but in aggregate not exceeding 75% of the PAT for the period for which the dividend is being proposed.
| Bucket | CET as at the end of the previous year | Dividend allowed as % of adjusted PAT |
| B1 | Upto (8 + z)% | 0 |
| B2 | Above 8 upto 10 + z% | 20 |
| B3 | Above 10 upto 12 + z% | 30 |
| B4 | Above 12 upto 14 + z% | 40 |
| B5 | Above 14 upto 16 + z% | 50 |
| B6 | Above 16 upto 17 + z% | 60 |
| B7 | Above 17 upto 18 + z% | 70 |
| B8 | Above 18 upto 19 + z% | 80 |
| B9 | Above 19 upto 20 + z% | 90 |
| B10 | Above 20 + z% | 100 |
Z is applicable D SIB buffer on select systemic important banks viz SBI, HDFC & ICICI.
A foreign bank operating in India in branch mode, that satisfies the eligibility criteria as specified above, may remit net profit / surplus (net of tax) earned in the normal course of business arising out of its Indian operations, without prior approval of the Reserve Bank, subject to the conditions that the accounts of the bank are audited and in the event of excess remittance, if any, the Head Office of that foreign bank immediately shall return the excess remittance and make good the shortfall.
POLICY RATES (As per MPC dated 6th Feb – rates unchanged)
REPO rate under Liquidity Adjustment Facility reduced to 5.25%
Standing Deposit Facility Rate (SDF) 5.00%
Marginal Standing Facility Rate (MSF) 5.50%
Fixed Reverse Repo Rate 3.35%
Bank Rate 5.50%
Penal interest for shortfall of CRR & SLR BR +3% = 8.50%
BR + 5% = 10.50%
RESERVE RATES
CRR 3%
SLR 18%
Authors Note: For shortfall in CRR and SLR of 3 days or less a rate of Bank Rate + 3% is charged by RBI while for shortfall of above 3 days a of Bank Rate + 5% is charged.
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