RBI amends the Guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff of banks

The Reserve Bank of India vide circular dated August 30, 2021 has amended the Guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff of banks. It has been observed that banks do not recognize grant of the share-linked compensation as an expense in their books of account concurrently. Therefore, it is clarified that it shall be recognized as expense beginning with the accounting period for which approval has been granted.

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