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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934 (as applicable to Financial Sector)

RBI issues Reserve Bank of India (Payments Banks – Governance) Third Amendment Directions, 2026

30-Jul-2026 | 27/208 DOR.ACC.REC.No.186/29.67.001/2026-27

RBI has issued Reserve Bank of India (Payments Banks – Governance) Third Amendment Directions, 2026 Through this amendment, paragraph 37(3)(ii)(f), relating to Share-linked Instruments, and paragraph 37(7), relating to Guidelines on Disclosures, have been substituted. The revised provisions state that share-linked instruments shall form part of the variable pay component. Banks are required to frame norms for granting such instruments in accordance with the applicable statutory provisions, and these norms must be incorporated into the bank's compensation policy. Details of the share-linked instruments granted must be disclosed in accordance with the disclosure requirements prescribed under the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025. Further, share-linked instruments must be fair valued on the date of grant using the Black-Scholes model, and the fair value determined shall be recognised as an expense starting from the accounting period for which approval has been granted. The revised disclosure guidelines require banks to disclose the remuneration of Whole-time Directors (WTDs), Managing Director & Chief Executive Officer (MD & CEO), and Material Risk Takers (MRTs) at least annually in their Annual Financial Statements, in accordance with the Reserve Bank of India (Payments Banks Financial Statements – Presentation and Disclosures) Directions, 2025 and the Reserve Bank of India (Payments Banks - Prudential Norms on Capital Adequacy) Directions, 2025, as amended from time to time.

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Industry Specific- Pharma

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