Bank Salary: Now these people will be able to earn up to Rs 30 lakh every year in banks, RBI increased the limit

Bank Salary: Now these people will be able to earn up to Rs 30 lakh every year in banks, RBI increased the limit

The way has now been cleared for people joining the boards of various banks as non-executive directors to get higher payments. RBI has increased the limit of remuneration of non-executive directors of banks.

Earlier the limit was up to Rs 20 lakh

According to the latest update of the Reserve Bank, banks will now increase the limit of remuneration of their non-executive directors. Up to Rs 30 lakh can be given annually to the executive director. Earlier there was a limit of Rs 20 lakh for this. The Reserve Bank said that the boards of banks can fix remuneration in the range of up to Rs 30 lakh depending on the size of the bank, experience of the non-executive director and other factors.

Banks will have to adjust the remuneration. Disclosure

Banks will have to disclose the remuneration of their non-executive directors in their annual financial statements. Private sector banks will need to obtain regulatory approval for the remuneration of part-time chairman. All banks will set standards regarding remuneration of non-executive directors on their boards. If any change is made in the remuneration of an existing non-executive director, then the approval of the board will also be required.

Instructions will be applicable to such banks

Reserve Bank said. That these instructions will be applicable to all private sector banks including small finance banks (SFBs) and payments banks. Wholly owned subsidiaries of foreign banks will also have to follow these instructions. The Central Bank said that these instructions have come into effect with immediate effect.

Reserve Bank increased the limit for this reason

The role of non-executive directors is very important in all banks. . They are necessary for the proper functioning of various committees including the boards of banks. Non-executive directors also have an impact on the corporate governance of banks. The Reserve Bank said that considering their important role, it is necessary that talented people come forward, that is why it has been decided to increase the limit of remuneration.

Also read: Get double returns by buying government gold, you will get the opportunity from Monday, this update came out.

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