NRB, amending the unified directive on August 3, scraped the previous provision on cash dividend formulated during the pandemic.
In the monetary policy of the last FY, NRB had capped the cash dividend at a maximum of 30 percent of net distributable profit for FY 2077/78.
Similarly, the announced dividend should be less than the weighted average interest rate of the deposit maintained at the end of the previous FY. Moreover, the central bank had restricted BFIs from distributing cash dividend other than for tax purposes to those companies that have less than 5 percent in distributable profit compared to total paid-up capital.
