The Chief Executives,
All Banks/DFIs
Dear
Sirs/Madam,
Payment
of Remuneration to the Board of Directors
Please
refer to the Prudential Regulations issued vide BPD Circular
No.35 dated 28th October, 2003.
2.
It has been decided to replace Para C.2 in regulation G-1
of the Prudential Regulations for Corporate/ Commercial
Banking as under:
"The banks/DFIs during a calendar year may pay a reasonable
and appropriate remuneration to their non-executive directors
and chairman for performance of their functions and duties.
However, the total amount of remuneration to be paid to
the non-executive directors and chairman during a calendar
year should be approved on a pre or post facto basis in
the annual general meeting. It may please be ensured that
except as mentioned above, no additional payment or perquisites
will be paid to the non-executive directors and chairman.
Furthermore, no consultancy or allied work will be awarded
to the non-executive directors or to the firms/ institutions/
companies etc. in which they hold substantial interest."
