Circular No. RBI/2023-24/121 DoR.HGG.GOV.REC.75/29.67.001/2023-24, Dated 09.02.2024
According to the circular dated 26.04.2021, the ceiling of Rs. 20 lakh per annum was specified in respect of remuneration of Non-Executive Directors (NEDs), other than the Chair of the Board.
Considering the crucial role of NEDs in the efficient functioning of bank Boards and its various Committees and in order to further enable the banks to sufficiently attract qualified competent individuals on their Boards, the RBI has now decided to revise the aforementioned ceiling to Rs. 30 lakh per annum.
Further, 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 Rs. 30 lakh per annum depending upon the size of the bank, experience of the NED and other relevant factors.
The instructions would apply 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.
Click Here To Read The Full Circular
The post RBI Hikes Ceiling on Remuneration for Non-Executive Directors of Private Banks From 20 Lakhs to 30 Lakhs Per Annum appeared first on Taxmann Blog.
