RBI has revised the cap on remuneration of non-executive directors (‘NEDs’) in relation to banks by way of its Circular dated February 9, 2024, from INR 2,000,000 (approx. US$ 24,000) per annum to INR 3,000,000 (approx. US$ 36,000) per annum. The decision stems from the recognition that NEDs play a crucial role in ensuring the efficient functioning of bank boards and their various committees and that raising the limit enables banks to attract individuals with the necessary expertise, experience, and skill. Banks can, however, impose an internal lower limit depending on the size of the bank, experience of the NED and other relevant factors. Banks are required to, at least on an annual basis, disclose the remuneration paid in their annual financial statements.