Mumbai, Dec. 10 -- The Reserve Bank of India has restricted Kotak Mahindra Bank from paying dividend on perpetual non-cumulative preference shares (PNCPS) in accordance with its December 4 circular asking banks and certain category of Non banking Finance Companies (NBFCs) to not to make any dividend payment on equity shares from the profits pertaining to the financial year ended March 31, 2020.

Non-cumulative preference shares are those shares that provide the shareholder fixed dividend amount each year from the company's net profit but in case the company fails to pay the dividend on such preference share to the shareholder in any year then such dividend cannot be claimed by the shareholder in future.

"It is clarified that the above re...