The Reserve Bank of India on Thursday said it is working on the modalities for setting up the Banking Codes and Standards Board of India (BCSBI) to ensure comprehensive code of conduct for fair treatment to customers.
"As announced in the annual policy statement for 2005-06, the proposed board is to be evolved on the model of the mechanism in the United Kingdom," the central bank said in a press release.
RBI sets limits for banks' dividends
The Reserve Bank of India also said that banks wanting to pay dividends should have a minimum capital to risk adjusted ratio (CRAR) of 9% for preceding two completed years and the accounting year for which it proposes to declare dividend, and Net NPAs less than 7%.
A notification said banks meeting these limits can pay dividends of up to 40% of net profit.
"In case any bank does not meet the above CRAR norms, but is having a CRAR of at least 9 % for the accounting year for which it proposes to declare dividend, it would be eligible to declare dividend provided its net NPA ratio is less than 5%," the notification added.
Additional inputs: Business Standard
