According to the guidelines, unveiling remuneration paid to directors in the annual financial statements would be mandatory for banks, as per RBI guidelines.
The non-executive director of private banks could receive remuneration up to Rs 10 lakhs per annum in the form of profit-related commission from the banks, as per guidelines issued by the Reserve Bank of India.
The compensation of non-executive part-time chairman would need to take approval beforehand from the Central Bank, says an ET report.
According to the guidelines, unveiling remuneration paid to directors in the annual financial statements would be mandatory for banks, as per RBI guidelines.
A sitting fee could be offered to non executive directors by banks apart from the compensation. This should naturally be in sync with the provisions of the Companies Act, 2013. Any expenses for participation in the board could also be reimbursed by the banks, the report said.
Due to the guidelines issued, private banks will have to look at their compensation policy for independent directors of their boards, from a fresh perspective, the report stated.
"Deficiencies would have the effect of increasing the risk profile of banks with attendant consequences, including a requirement of additional capital if the deficiencies are very significant," the banking regulator said.
Presence of professional directors in the boards of banks is non negotiable hence the move would be helpful in attracting and retaining the same, RBI said.
The compensation of non-executive part-time chairman would need to take approval beforehand from the Central Bank, says an ET report.
According to the guidelines, unveiling remuneration paid to directors in the annual financial statements would be mandatory for banks, as per RBI guidelines.
A sitting fee could be offered to non executive directors by banks apart from the compensation. This should naturally be in sync with the provisions of the Companies Act, 2013. Any expenses for participation in the board could also be reimbursed by the banks, the report said.
Due to the guidelines issued, private banks will have to look at their compensation policy for independent directors of their boards, from a fresh perspective, the report stated.
"Deficiencies would have the effect of increasing the risk profile of banks with attendant consequences, including a requirement of additional capital if the deficiencies are very significant," the banking regulator said.
Presence of professional directors in the boards of banks is non negotiable hence the move would be helpful in attracting and retaining the same, RBI said.
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