Banking Regulation Act, 1949 · Section guide
Section 15: Restrictions as to payment of dividend
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 15 — Restrictions as to payment of dividend. Restricts dividend payment until capitalised expenses and losses specified by the section are written off,. while permitting the statutory exceptions where depreciation/bad debts are adequately provided for to the auditor’s satisfaction.
Official statute linkedProvision-specific anatomyPractical case + evidence file
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Restricts dividend payment until capitalised expenses and losses specified by the section are written off, while permitting the statutory exceptions where depreciation/bad debts are adequately provided for to the auditor’s satisfaction.
Condition / limitation
How to read the provisionSection 15: read the operative proposition with its defined terms and cross-references in the official Act.
Timing / amount / process
Boundary of the ruleDo not expand Section 15 by analogy; distinguish statutory text from stricter policy or later RBI requirements.
Professional application
Set out dividend restrictions, expenditure/write-off conditions and exceptions with a worked distributable-profit example.
Related sections inside the Act
Use these links to read Section 15 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: Section 15 is anchored to the official DFS consolidated text; later changes require separate Gazette verification.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 15 on the event date.
Primary official sources
Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.