RBI raises bank directors’ compensation ceiling

MUMBAI: From Rs 20 lakh to Rs 30 lakh annually, the RBI has raised the cap on fees paid to non-executive directors of banks. The modification was made two years after the RBI released new corporate governance standards that restricted the compensation of non-executive directors, with the exception of the board chair.

The RBI said that it changed the cap because it understood how important non-executive directors are to the smooth running of bank boards and their committees. With this change, banks should be able to more easily recruit capable and qualified people to successfully serve on their boards.