MUMBAI: The RBI has increased the ceiling on fees paid to non-executive directors of banks to Rs 30 lakh per year from the existing level of Rs 20 lakh. The revision comes two years after RBI came out with new guidelines for directors as a part of corporate governance, where it capped the remuneration for non-executive directors, excluding the chair of the board.
RBI said that it revised the ceiling in recognition of the vital role of non-executive directors in ensuring the effective operation of bank boards and their various committees. This adjustment aims to enable banks to attract qualified and competent individuals to serve on their boards effectively.
