NRB implemented the provision by issuing a circular ‘Guidelines for Dividend Distribution, 2082‘on Sunday.
Payment Service Provider companies are allowed to distribute dividend after they allocate funds in Risk Bearing Reserve, General Reserve and Infrastructure Development Reserve.
The companies with negative retained earnings are barred from dividend distribution. Similarly, they are required to distribute profit from the profit of the same year. Likewise, they are not allowed to distribute profit from share premium and Bargain Purchase Gain. Moreover, companies with negative net worth are also not allowed to distribute dividend.
