The Reserve Bank of India issued its third 2026 amendment to the Payments Banks – Governance Directions, revising provisions on share-linked variable pay and annual remuneration disclosures. The changes take effect on April 1, 2027, following a review related to revised Basel Pillar 3 disclosure requirements. Payments banks must include share-linked instruments within variable pay and incorporate grant standards consistent with applicable law into their compensation policies. Such instruments must be valued at grant using the Black-Scholes model, with the fair value recognized as an expense beginning in the accounting period for which approval was granted. The amendment also revises the disclosure provisions covering share-linked awards and annual remuneration of whole-time directors, managing directors and chief executive officers, and material risk takers.
2026-07-30Reserve Bank of India
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.