RBI to probe payouts to key NBFC executives under new remuneration policy

Payouts to key management personnel at non-banking financial companies (NBFCs) are under the supervision of the banking regulator. Top industry officials said this is a follow-up to the Reserve Bank of India (RBI) circular dated April 29, 2022, which asked NBFCs in the “middle” and “top” tiers of its four-tier regulatory framework (SBR) to implement board-approved remuneration policies. These include constitution of a remuneration committee, principles for fixed-variable pay structures and clawback provisions that came into effect from April 1 last year.

The RBI’s annual report for FY 2024 also explicitly makes this among the key regulators