The Reserve Bank of India (RBI) on March 10, 2026, issued the Reserve Bank of India (Local Area Banks – Prudential Norms on Declaration of Dividends) Repeal Directions, 2026.
The following has been stated:
• It has repealed the Reserve Bank of India (Local Area Banks – Prudential Norms on Declaration of Dividends) Directions, 2025, and replaced them with the Reserve Bank of India (Local Area Banks – Prudential Norms on Declaration of Dividends) Directions, 2026, effective from FY 2026–27.
• However, any actions, approvals, liabilities, penalties, or legal proceedings initiated under the repealed 2025 Directions will continue to remain valid and be governed by the earlier provisions, ensuring continuity and no impact on rights or obligations already established.
[Notification no. - RBI/DOR/2025-26/237 DOR.ACC.REC.No.426/21.02.067/2025-26]
