The Reserve Bank of India has amended its governance requirements for payments banks, aligning disclosures on share-linked compensation and senior management remuneration with the disclosure framework under the Payments Banks Prudential Norms on Capital Adequacy Directions, 2025. The amendments take effect on April 1, 2027. Share-linked instruments must form part of variable pay, with grant standards included in each bank’s compensation policy and disclosures made under the applicable prudential framework. Banks must fair value the instruments on the grant date using the Black-Scholes model and recognize the resulting amount as an expense from the accounting period for which approval was granted. They must also disclose remuneration for whole-time directors, managing directors and chief executive officers, and material risk takers at least annually in their annual financial statements.
Reserve Bank of India2026-07-30
Reserve Bank of India revises payments bank compensation and remuneration disclosure rules from April 2027
The Reserve Bank of India has revised compensation and remuneration disclosure requirements for payments banks, effective April 1, 2027. The amendments cover the treatment, valuation and disclosure of share-linked instruments and annual remuneration disclosures for senior executives and material risk takers.