Kathmandu. The payment companies can pay dividends only after fulfilling the conditions set by the Rastra Bank. Issuing a notice on Sunday, the Nepal Rastra Bank (NRB) has made it mandatory for the licensed organization to distribute dividends only after depositing the amount in various funds designated by the central bank.

The payment companies will be able to distribute dividends only after depositing sufficient amount in the risk-bearing fund, reserve fund and infrastructure development fund. According to the guidelines, dividend distribution should be done only in such a way that the basis for maintaining the regulatory capital and continuous growth of the transaction and the development of risk-bearing capacity helps in the management of resources and the implementation of the business continuity plan.

The Guidelines on Dividend Distribution for Institutions Licensed to Carry Out Payment Related Activities, 2082, states that the dividend policy should be formulated only by incorporating the policies related to the organization’s plan, cash dividend and share dividend in relation to maintaining regulatory capital.