ESOPs to be linked to banks' performance

Framework to incentivise employees referred to RBI for approval

The proposed employee stock option plans (ESOPs) for public sector banks (PSBs) to retain talent will be introduced for select banks that meet the performance criterion of the scheme.

The framework the government has created to incentivise employees has been referred to the Reserve Bank of India (RBI) for approval.

The finance ministry had, in March, agreed in principle to allow PSBs to offer stock options to their employees from 2017-18.

“We have finalised the framework to issue ESOPs after discussing the matter with the Indian Banks’ Association. Banks’ performance will be a key parameter, along with others, for the ESOPs. At the