The Reserve Bank of India (RBI) on July 30, 2026, issued the Reserve Bank of India (Commercial Banks – Governance) Third Amendment Directions, 2026, further to amend the Reserve Bank of India (Commercial Banks – Governance) Directions, 2025.
The following has been amended, namely:
• The amendment provides that share-linked instruments granted by private sector banks (PVBs) shall form part of the variable pay of employees, be governed by the bank's compensation policy, be fair valued using the Black-Scholes model on the grant date, recognised as an accounting expense from the approved accounting period, and disclosed in accordance with the RBI's financial statement and prudential disclosure requirements.
• The amendment also revises the disclosure requirements by mandating that remuneration details of Whole-Time Directors (WTDs), Managing Director & CEO/CEO, and Material Risk Takers (MRTs) be disclosed annually in the bank's Annual Financial Statements as per the prescribed RBI disclosure framework.
• The amendments shall come into force from April 1, 2027.
[Notification no - RBI/DOR/2026-27/206 DOR.ACC.REC.No.183/29.67.001/2026-27]
