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In order to infuse greater transparency and uniformity in practice, it has been decided to prescribe guidelines on distribution of dividend by NBFCs. Applicability These guidelines shall be applicable to all NBFCs regulated by RBI1 as below: Applicable NBFCs as defined in Paragraph 2(2) of Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016; and Applicable NBFCs as defined in Paragraph 2(2) of Non-Banking Financial Company – Non- systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. Effective Date These guidelines shall be effective for declaration of dividend from the profits of the financial year ending March 31, 2022 and onwards.