Banks are advised to revise the ceiling limit of remuneration of NEDs from Rs. 20 lakh per annum to Rs. 30 lakhs per annum in order to further enable the banks to sufficiently attract qualified competent individuals on their Boards.
The banks are required to have suitable criteria for granting fixed remuneration to its NEDs, with the approval of its Board before any review of the extant remuneration. The Board of the bank may fix a lower amount within the ceiling limit of ₹30 lakh per annum depending upon the size of the bank, experience of the NED and other relevant factors.
Banks are required to make disclosure on remuneration paid to the directors on an annual basis at a minimum, in their Annual Financial Statements.
The instructions would be applicable to all the Private Sector Banks including Small Finance Banks (SFBs) and Payment Banks (PBs) as also the wholly owned subsidiaries of Foreign Banks.
The instructions would come into force with immediate effect.
Link of the Circular:
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12607&Mode=0
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