Issuing a circular on Thursday, the central bank said that the microfinance companies which were unable to maintain capital fund ratio in between the FY however does so at the end of the year will not be allowed to distribute dividend.
Previously, the companies used to distribute dividend on the basis of financial reports prepared by auditors that showed maintenance of capital fund at the end of the FY.
After the mechanism, microfinance companies must maintain a minimum capital fund to distribute dividend.
