Start learning 50% faster. Sign in now
RBI issued guidelines for compensation of key managerial personnel and senior management of non-banking finance companies, RBI said that the finance companies have to constitute a nomination and remuneration committee (NRC), which will have the mandate to oversee the framing, review and implementation of compensation policy of the company with the approval of the board. NRC will also have to work with the risk management committee of the company to achieve effective alignment between compensation and risks. NRC may ensure that compensation levels are supported by the need to retain earnings of the company and the need to maintain adequate capital based on Internal Capital Adequacy Assessment Process (ICAAP). These guidelines are as per the scale-based regulation for NBFCs introduced by RBI in October last year. RBI has said that all the fixed items of compensation, including the perquisites and contributions towards superannuation/retiral benefits, may be treated as part of fixed pay. These guidelines will come into effect from April 1, 2023 and will be effective on all the finance companies, apart from the ones in the base layer. The proportion of variable pay in the total compensation of the management of NBFCs should be commensurate with their role and prudent risk-taking profile and at higher levels of responsibility, the proportion of variable pay should be higher. The board of NBFCs may not offer guaranteed bonuses to the senior management and key managerial personnel.
What is the primary objective of 'Operation Sajag' conducted by the Indian Coast Guard along the west coast?
What is the expected percentage of power generation from renewable sources in India's energy mix for the power sector in 2030, according to the Central ...
Which company has been approved to develop the 669-megawatt (MW) Lower Arun Hydropower project in eastern Nepal?
Which of the following best describes the impact of the Hangor-class submarines being built for Pakistan by China?
India discussing settling non-oil trade in Rupees from which of the following gulf country?
SoftBank has sold 2 percent of its shares in One97 Communications, the parent firm of Paytm.After the latest sale, SoftBank’s stake in the company is ...
Which of the following bank has bagged the best performing bank award in Tamil Nadu for the FY 2021-22 under SHG Bank Linkage Programme category from NA...
Prime Minister Shri Narendra Modi dedicated to the nation Hindustan Aeronautics Limited (HAL) Helicopter Factory in which city of Karnataka?
Which institution signed an MoU with Airbus Helicopters for financing helicopter purchases in India?
_________ and the National Highway Authority of India (NHAI) have signed a MoU to simplify their infrastructure expansion works, as the country-wide n...