Reference may please be made to the instructions issued vide BPRD Circular No. 3 dated April 23, 2007 (Para 2 of section C) regarding the captioned subject.

2.    It has been decided to delete second sentence of the above mentioned regulation with immediate effect. Accordingly the revised Para 2 of Section C of Prudential Regulation G-1 will be as under:-

“The banks/DFIs during a calendar year may pay a reasonable and appropriate remuneration for attending the Board or its committee (ies) meeting (s), to their non-executive directors and chairman. The scale of remuneration to be paid to the non-executive directors and chairman for attending the Board and/or committee meetings shall be approved by the shareholders on a pre or post facto basis in the Annual General Meeting (AGM). However, no such remuneration shall be paid to the executive directors except usual TA/DA as per bank’s/DFI’s standard rules and regulations. 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.”

3.       All other instructions on the subject shall remain unchanged.