RBI issues guidelines on compensation of Whole time Directors, Chief Executive Officers, Material Risk Takers and Control Function staff

Nov 07, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on November 04, 2019, has issued guidelines on compensation of Whole time Directors, Chief Executive Officers, Material Risk Takers and Control Function staff. These Guidelines will be applicable for pay cycles beginning from or after April 01, 2020. All applications for approval of appointment or re-appointment or approval of remuneration or revision in remuneration of Whole Time Directors (WTDs), Chief Executive Officers (CEOs) shall be submitted with full details as mentioned in Appendix 1 (Page 4). These guidelines will be applicable to private sector banks, foreign banks operating under the Wholly Owned Subsidiary mode (WOS), and foreign banks operating in India under the branch mode are required to obtain regulatory approval for grant of remuneration to WTDs, CEOs under the Banking Regulation Act, 1949.

This Notification prescribes about the Financial Stability Board (FSB) Principles for Sound Compensation Practices, guidelines on compensation for Private Sector Banks and Foreign Banks, Regulatory and Supervisory Approval.

[Notification No. RBI/2019-20/89 DOR.Appt.BC.No.23/29.67.001/2019-20]


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