Policy ID: PCI/POL/29/2026-27 • Version 1.0 Owner: NRC / Board / HR • Approver: Board of Directors Sources: GOV, COA • Review: Annual / regulatory change
Purpose and application
KMP and senior management; RBI compensation chapter applies to relevant Middle/ Upper Layer NBFCs with specified exemptions.
1. Governance:- NRC shall recommend and the Board shall approve pay structures, performance measures, deferral and malus/claw back. Interested beneficiaries shall not determine their own remuneration. Comply with Companies Act, employment contracts and shareholder approvals where applicable.
2. Fixed and variable components:- Document fixed salary, benefits and capped reimbursements. Variable pay shall reflect role, risk, individual/unit/Company performance and may reduce to zero. Do not guarantee bonuses except permitted joining arrangements. Pay cannot undermine capital/liquidity resilience.
3. Risk-adjusted assessment:- Measure asset quality, sustained profit, customer outcomes, compliance and conduct along with growth. Risk, Compliance, Finance and Audit remuneration shall be independent of the business they oversee and support objective challenge.
4. Deferral and recovery:- Board shall set deferral horizon and portions consistent with risk emergence. Apply malus to unpaid awards and claw back to paid variable pay for defined misconduct, material misstatement or adverse risk outcomes, subject to enforceable contract and fair process.
5. Documentation and review:- HR shall maintain signed pay terms, scorecards, approvals and recovery decisions. NRC shall coordinate with Risk and review compensation outcomes annually. Make required disclosures and prohibit informal cash incentives or off-book director payments.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.