RBI working on strict, clear-cut clawback triggers for bank CEO pay

Linkage with RBI's compliance and inspection reports to be strengthened

The Reserve Bank of India (RBI) is crafting a comprehensive compensation package policy for the chief executive officers (CEOs) of private banks, which will reduce “the scope for interpretation” on remuneration, and lead to a significantly higher price being paid by them by way of clawback of stock options and bonuses on non-compliance with the regulatory.

The policy will place greater emphasis on the findings of Mint Road’s annual financial inspection reports and risk-based supervision — the offsite surveillance system — of private banks. 

Emphasis is expected to be put on compliance by these entities and subsidiaries with the other