13 July, 2015
The RBI's circular dated June 1, 2015 prescribes guidelines on compensation of non-executive directors of private sector banks. Private sector banks are now required to obtain approval regarding remuneration of a part-time non-executive chairman in terms of Sections10B(1A)(i) and 35B of the Banking Regulation Act, 1949. The circular also requires private banks to formulate and adopt a comprehensive compensation policy (complying with the Companies Act) for non-executive directors(other than the part-time non-executive chairman).
For further information, please contact:
Abhishek Saxena, Partner, Phoenix Legal
abhishek.saxena@phoenixlegal.in
