{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md13129","title":"Reserve Bank of India (Small Finance Banks – Governance) Directions, 2025","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13129","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Small finance banks","class_code":"SFB","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13129","mode":"four_dates_v1","published":{"label":"Published","value":"Nov 28, 2025","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md13129.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13129","document_date":"Nov 28, 2025","read_by_bankpulse":"2026-08-21 16:16:35 UTC","text_sha256":"c53c591b4d9f20c17c4100e75719845edc379bb64686b50a06707e1cac85cde0","word_count":9383,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":59,"points_naming_an_rbi_paragraph":59,"points_stored":59,"actions":0,"amendments":2},"points":[{"n":1,"claim":"md13129-1840df20","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"In force at once","plain_english":"These Directions came into force with immediate effect.","rbi_paragraph":"Para 2","rbi_char_offset":3317,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p1","layer":"bankpulse"},{"n":2,"claim":"md13129-252efb53","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These Directions apply to small finance banks.","rbi_paragraph":"Para 3","rbi_char_offset":3399,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p2","layer":"bankpulse"},{"n":3,"claim":"md13129-2b07f143","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Some banks partly exempt","plain_english":"Non scheduled small finance banks are exempt from the chief risk officer and chief financial officer chapters.","rbi_paragraph":"Para 3","rbi_char_offset":3744,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p3","layer":"bankpulse"},{"n":1,"claim":"md13129-b5784c6a","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Age limits for directors","plain_english":"A non executive director must be at least 35 years old and may not continue past 75.","rbi_paragraph":"Para 9","rbi_char_offset":8509,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p4","layer":"bankpulse"},{"n":2,"claim":"md13129-6cb27cc0","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Most seats need experts","plain_english":"At least 51 per cent of the board must have special knowledge in fields like banking, law or agriculture.","rbi_paragraph":"Para 9(2)","rbi_char_offset":9002,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":["agriculture-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p5","layer":"bankpulse"},{"n":3,"claim":"md13129-b3938b06","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"No lawmakers on board","plain_english":"A member of Parliament or a state legislature cannot be a director.","rbi_paragraph":"Para 9(2)","rbi_char_offset":10649,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p6","layer":"bankpulse"},{"n":4,"claim":"md13129-97da8aa6","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Eight years, then a break","plain_english":"A non executive director serves at most eight years in total on the board.","rbi_paragraph":"Para 9(2)","rbi_char_offset":11446,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p7","layer":"bankpulse"},{"n":5,"claim":"md13129-91cd71d5","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Three years before returning","plain_english":"After eight years the person may return only after a gap of three years.","rbi_paragraph":"Para 9(2)","rbi_char_offset":11545,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p8","layer":"bankpulse"},{"n":6,"claim":"md13129-5e05ad15","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Fifteen years at the top","plain_english":"Nobody holds the chief executive or whole time director post beyond 15 years.","rbi_paragraph":"Para 13","rbi_char_offset":12998,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p9","layer":"bankpulse"},{"n":7,"claim":"md13129-f209520b","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"A clean cooling period","plain_english":"During the cooling period the person cannot be associated with the bank or its group in any way.","rbi_paragraph":"Para 13","rbi_char_offset":13290,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p10","layer":"bankpulse"},{"n":8,"claim":"md13129-7af134f9","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Promoters get twelve years","plain_english":"A promoter or major shareholder in these posts gets 12 years, or 15 only at RBI's sole discretion.","rbi_paragraph":"Para 15","rbi_char_offset":13774,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p11","layer":"bankpulse"},{"n":9,"claim":"md13129-78136379","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"THE CORE IDEA","heading":"Fit and proper first","plain_english":"Before a director is appointed, the bank must check their skills, record and integrity.","rbi_paragraph":"Para 7","rbi_char_offset":6179,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p12","layer":"bankpulse"},{"n":10,"claim":"md13129-3f44b357","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Two rural voices","plain_english":"At least two directors must know agriculture and rural economy, co-operation or small scale industry.","rbi_paragraph":"Para 9(2)","rbi_char_offset":9715,"weight":"DO IT","role":"Board","team":null,"products_covered":["agriculture-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p13","layer":"bankpulse"},{"n":11,"claim":"md13129-42fd0e6e","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"THE CORE IDEA","heading":"Chair and chief separated","plain_english":"The bank must have a part time chairman and a separate chief executive who runs day to day management.","rbi_paragraph":"Para 11","rbi_char_offset":12431,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p14","layer":"bankpulse"},{"n":12,"claim":"md13129-df4bcce4","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Two whole time directors","plain_english":"The board must include at least two whole time directors, counting the chief executive.","rbi_paragraph":"Para 12","rbi_char_offset":12636,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p15","layer":"bankpulse"},{"n":13,"claim":"md13129-a7c6ab07","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHO SHOULD ACT","heading":"The committee screens them","plain_english":"The pay and nominations committee reads each director's declaration closely before it is accepted.","rbi_paragraph":"Para 8","rbi_char_offset":6656,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p16","layer":"bankpulse"},{"n":14,"claim":"md13129-d7ac4f5b","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Nobody vets themselves","plain_english":"Due diligence on committee members is done by the board itself; interested members stay out.","rbi_paragraph":"Para 8","rbi_char_offset":7508,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p17","layer":"bankpulse"},{"n":15,"claim":"md13129-2b051e03","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"One family seat only","plain_english":"As a desirable practice, not more than one member of a family or close associate sits on the board.","rbi_paragraph":"Para 9(2)","rbi_char_offset":11280,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p18","layer":"bankpulse"},{"n":16,"claim":"md13129-f2cd0b33","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHO SHOULD ACT","heading":"A yearly covenant","plain_english":"Every director signs a deed of covenant and refreshes their declaration each year as on March 31.","rbi_paragraph":"Para 10","rbi_char_offset":11849,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p19","layer":"bankpulse"},{"n":17,"claim":"md13129-42f0494b","page_group":"Chapter II. Constitution of Board and Appointment of Directors","stored_section":"WHAT CHANGES","heading":"Seventy is the ceiling","plain_english":"No one continues as chief executive or whole time director past the age of 70.","rbi_paragraph":"Para 14","rbi_char_offset":13525,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p20","layer":"bankpulse"},{"n":1,"claim":"md13129-17a154bb","page_group":"Chapter IV. Role of the Board and Individual Directors","stored_section":"WHAT CHANGES","heading":"Directors cannot command staff","plain_english":"A non executive director gives no orders to employees; everything routes through the chief executive.","rbi_paragraph":"Para 23","rbi_char_offset":17068,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p21","layer":"bankpulse"},{"n":2,"claim":"md13129-f7365971","page_group":"Chapter IV. Role of the Board and Individual Directors","stored_section":"WHAT CHANGES","heading":"No sponsoring loans","plain_english":"A director may not sponsor any loan proposal or push a branch manager to sanction facilities.","rbi_paragraph":"Para 23","rbi_char_offset":18603,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p22","layer":"bankpulse"},{"n":3,"claim":"md13129-c9a226ea","page_group":"Chapter IV. Role of the Board and Individual Directors","stored_section":"WHAT CHANGES","heading":"No staff favours","plain_english":"A director may not push individual cases of recruitment, transfer or promotion.","rbi_paragraph":"Para 23","rbi_char_offset":19189,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p23","layer":"bankpulse"},{"n":4,"claim":"md13129-739107fb","page_group":"Chapter IV. Role of the Board and Individual Directors","stored_section":"WHAT CHANGES","heading":"Interested directors step back","plain_english":"A director interested in a proposal must disclose it and stay out of the vote.","rbi_paragraph":"Para 23","rbi_char_offset":18275,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p24","layer":"bankpulse"},{"n":5,"claim":"md13129-4289fe75","page_group":"Chapter IV. Role of the Board and Individual Directors","stored_section":"THE CORE IDEA","heading":"Four duties of the board","plain_english":"The board watches risk, keeps the controls honest, ensures expert management and guards all stakeholders.","rbi_paragraph":"Para 17","rbi_char_offset":14591,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p25","layer":"bankpulse"},{"n":1,"claim":"md13129-5224a00d","page_group":"Chapter V. Board Structure and Practices","stored_section":"WHAT CHANGES","heading":"An independent chair","plain_english":"The chair of the board must be an independent director, and so must whoever stands in.","rbi_paragraph":"Para 26","rbi_char_offset":24163,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p26","layer":"bankpulse"},{"n":2,"claim":"md13129-a5591399","page_group":"Chapter V. Board Structure and Practices","stored_section":"WHAT CHANGES","heading":"Quorum with independents","plain_english":"Board meetings need one third of the board or three directors, and half of those attending must be independent.","rbi_paragraph":"Para 27","rbi_char_offset":24351,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p27","layer":"bankpulse"},{"n":3,"claim":"md13129-fd802b7c","page_group":"Chapter V. Board Structure and Practices","stored_section":"WHAT CHANGES","heading":"Seven themes on the agenda","plain_english":"The board agenda must cover seven themes: strategy, risk, reports, compliance, customers, inclusion and people.","rbi_paragraph":"Para 28","rbi_char_offset":24708,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p28","layer":"bankpulse"},{"n":4,"claim":"md13129-dc495026","page_group":"Chapter V. Board Structure and Practices","stored_section":"WHAT CHANGES","heading":"Dissent is recorded","plain_english":"Board minutes must record observations and dissents of individual directors and go back to them for confirmation.","rbi_paragraph":"Para 33","rbi_char_offset":28059,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p29","layer":"bankpulse"},{"n":5,"claim":"md13129-38c1415d","page_group":"Chapter V. Board Structure and Practices","stored_section":"WHO SHOULD ACT","heading":"RBI circulars reach the board","plain_english":"Copies of RBI and government directives go before the board with proper background.","rbi_paragraph":"Para 31","rbi_char_offset":26986,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p30","layer":"bankpulse"},{"n":1,"claim":"md13129-c8eab3fd","page_group":"Chapter VI. Committees of the Board","stored_section":"WHAT CHANGES","heading":"The chair stays out","plain_english":"The chair of the board may not sit on the audit committee.","rbi_paragraph":"Para 34","rbi_char_offset":28768,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p31","layer":"bankpulse"},{"n":2,"claim":"md13129-602fd127","page_group":"Chapter VI. Committees of the Board","stored_section":"WHAT CHANGES","heading":"Audit chair sanctions nothing","plain_english":"The audit committee's chair may not sit on any committee that sanctions credit.","rbi_paragraph":"Para 35","rbi_char_offset":29198,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p32","layer":"bankpulse"},{"n":3,"claim":"md13129-e8542dbf","page_group":"Chapter VI. Committees of the Board","stored_section":"WHAT CHANGES","heading":"Quarterly audit meetings","plain_english":"The audit committee meets at least once a quarter; two thirds of those attending must be independent.","rbi_paragraph":"Para 37","rbi_char_offset":29454,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p33","layer":"bankpulse"},{"n":4,"claim":"md13129-fd795132","page_group":"Chapter VI. Committees of the Board","stored_section":"WHAT CHANGES","heading":"A risk committee too","plain_english":"The board must set up a risk committee. Most of its members are non executive directors.","rbi_paragraph":"Para 38","rbi_char_offset":29700,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p34","layer":"bankpulse"},{"n":5,"claim":"md13129-7239dac8","page_group":"Chapter VI. Committees of the Board","stored_section":"WHAT CHANGES","heading":"An audit committee of outsiders","plain_english":"The audit committee consists only of non executive directors, with at least one finance expert.","rbi_paragraph":"Para 34","rbi_char_offset":28330,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p35","layer":"bankpulse"},{"n":6,"claim":"md13129-0ee50483","page_group":"Chapter VI. Committees of the Board","stored_section":"WHAT CHANGES","heading":"Risk chair stands alone","plain_english":"The risk committee is chaired by an independent director who chairs neither the board nor any other committee.","rbi_paragraph":"Para 41","rbi_char_offset":30245,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p36","layer":"bankpulse"},{"n":1,"claim":"md13129-79d49efd","page_group":"Chapter VII. Appointment of Chief Risk Officer","stored_section":"WHAT CHANGES","heading":"No dual hats","plain_english":"The chief risk officer may not also be chief executive, operating, financial or internal audit chief.","rbi_paragraph":"Para 49","rbi_char_offset":31787,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p37","layer":"bankpulse"},{"n":2,"claim":"md13129-6254f6ef","page_group":"Chapter VII. Appointment of Chief Risk Officer","stored_section":"WHAT CHANGES","heading":"Removal is reported","plain_english":"Removing the chief risk officer early needs board approval and a report to RBI's supervision department.","rbi_paragraph":"Para 50","rbi_char_offset":32205,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p38","layer":"bankpulse"},{"n":3,"claim":"md13129-118bb156","page_group":"Chapter VII. Appointment of Chief Risk Officer","stored_section":"WHAT CHANGES","heading":"A chief risk officer","plain_english":"A board approved policy defines the chief risk officer's role, and safeguards protect their independence.","rbi_paragraph":"Para 47","rbi_char_offset":30985,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p39","layer":"bankpulse"},{"n":4,"claim":"md13129-e4829d7a","page_group":"Chapter VII. Appointment of Chief Risk Officer","stored_section":"WHAT CHANGES","heading":"No business targets","plain_english":"The chief risk officer reports to the chief executive or the risk committee and carries no business targets.","rbi_paragraph":"Para 49","rbi_char_offset":31639,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p40","layer":"bankpulse"},{"n":1,"claim":"md13129-63df5314","page_group":"Chapter VIII. Appointment of Chief Financial Officer and Chief Technical Officer","stored_section":"WHO SHOULD ACT","heading":"A qualified finance chief","plain_english":"The chief financial officer must be a qualified chartered accountant.","rbi_paragraph":"Para 52","rbi_char_offset":34108,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p41","layer":"bankpulse"},{"n":1,"claim":"md13129-7d293195","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Directors' pay is capped","plain_english":"A non executive director's fixed pay cannot exceed ₹30 lakh a year, besides sitting fees.","rbi_paragraph":"Para 53","rbi_char_offset":35600,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A non-executive director other than the Chair may be paid a fixed sum of up to ₹30 lakh a year. A board that votes ₹35 lakh has gone past that. The Chair sits outside this paragraph.","anchor":"https://bankpulse.ai/rule/md13129#p42","layer":"bankpulse"},{"n":2,"claim":"md13129-7b5fe581","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Half the pay must vary","plain_english":"For top executives at least 50 per cent of pay must be variable, tied to measured performance.","rbi_paragraph":"Para 55(3)","rbi_char_offset":39849,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"At least 50 per cent of the pay must be variable. Suppose total pay is ₹80 lakh. Then ₹40 lakh of it or more varies with performance.","anchor":"https://bankpulse.ai/rule/md13129#p43","layer":"bankpulse"},{"n":3,"claim":"md13129-355c37e5","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"A cap on variable pay","plain_english":"Total variable pay is capped at 300 per cent of fixed pay.","rbi_paragraph":"Para 55(4)","rbi_char_offset":40173,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Variable pay is limited to a maximum of 300 per cent of fixed pay. Suppose fixed pay is ₹40 lakh. Then variable pay stops at ₹1.2 crore.","anchor":"https://bankpulse.ai/rule/md13129#p44","layer":"bankpulse"},{"n":4,"claim":"md13129-f4ab1041","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Most of it waits","plain_english":"At least 60 per cent of an executive's variable pay sits under deferral.","rbi_paragraph":"Para 55(6)","rbi_char_offset":41274,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"At least 60 per cent of variable pay is deferred. Suppose variable pay is ₹50 lakh. Then ₹30 lakh waits, and ₹20 lakh may be paid now.","anchor":"https://bankpulse.ai/rule/md13129#p45","layer":"bankpulse"},{"n":5,"claim":"md13129-484cb4b8","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Three years of waiting","plain_english":"The deferral period is at least three years.","rbi_paragraph":"Para 55(6)","rbi_char_offset":41640,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p46","layer":"bankpulse"},{"n":6,"claim":"md13129-201bc246","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"No hedging pay","plain_english":"Employees may not insure or hedge their pay to undo its risk alignment.","rbi_paragraph":"Para 55(6)","rbi_char_offset":45830,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p47","layer":"bankpulse"},{"n":7,"claim":"md13129-82a80bb7","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Naming the risk takers","plain_english":"The bank must identify material risk takers using set qualitative and quantitative tests.","rbi_paragraph":"Para 55(6)","rbi_char_offset":47862,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p48","layer":"bankpulse"},{"n":8,"claim":"md13129-1b0626b7","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Pay can be taken back","plain_english":"Deferred pay faces malus and clawback if the bank or the line of business performs badly.","rbi_paragraph":"Para 55(6)","rbi_char_offset":43404,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p49","layer":"bankpulse"},{"n":9,"claim":"md13129-6d2b79f6","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Bad-loan gaps freeze pay","plain_english":"If the bank under reports bad loans beyond the disclosure line, unvested variable pay is withheld.","rbi_paragraph":"Para 55(6)","rbi_char_offset":44343,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p50","layer":"bankpulse"},{"n":10,"claim":"md13129-f6921523","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"No guaranteed bonus","plain_english":"Guaranteed bonus is allowed only as a joining bonus, in the first year, and only in share linked form.","rbi_paragraph":"Para 55(6)","rbi_char_offset":45127,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p51","layer":"bankpulse"},{"n":11,"claim":"md13129-37a4cebd","page_group":"Chapter IX. Remuneration of NEDs, WTDs, MD&CEO, Material Risk Takers, and Control Function staff","stored_section":"WHAT CHANGES","heading":"Control staff paid fixed","plain_english":"Risk and audit staff are paid mostly fixed, independent of the businesses they oversee.","rbi_paragraph":"Para 55(4)","rbi_char_offset":46213,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p52","layer":"bankpulse"},{"n":1,"claim":"md13129-00b36a9b","page_group":"Chapter X. Regulatory Approvals and Reporting","stored_section":"KEY DATES","heading":"Two names, four months","plain_english":"A new chief executive proposal carries at least two names and reaches RBI four months before the term ends.","rbi_paragraph":"Para 57","rbi_char_offset":53839,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p53","layer":"bankpulse"},{"n":2,"claim":"md13129-033d6a4c","page_group":"Chapter X. Regulatory Approvals and Reporting","stored_section":"KEY DATES","heading":"Six months for renewal","plain_english":"A re-appointment proposal for the chief executive reaches RBI at least six months before the term ends.","rbi_paragraph":"Para 57","rbi_char_offset":54030,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p54","layer":"bankpulse"},{"n":3,"claim":"md13129-6ce9babd","page_group":"Chapter X. Regulatory Approvals and Reporting","stored_section":"WHAT CHANGES","heading":"Board changes reported","plain_english":"Every change in board composition is reported to RBI as and when it happens.","rbi_paragraph":"Para 60","rbi_char_offset":54984,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p55","layer":"bankpulse"},{"n":4,"claim":"md13129-e6e2c6eb","page_group":"Chapter X. Regulatory Approvals and Reporting","stored_section":"WHAT CHANGES","heading":"RBI approves the top job","plain_english":"Appointing the chairman, chief executive or a whole time director needs RBI's prior approval through PRAVAAH.","rbi_paragraph":"Para 57","rbi_char_offset":53138,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p56","layer":"bankpulse"},{"n":5,"claim":"md13129-0994ed5e","page_group":"Chapter X. Regulatory Approvals and Reporting","stored_section":"WHAT CHANGES","heading":"Pay needs approval","plain_english":"Executive pay needs RBI approval under the banking law. The test is these very guidelines.","rbi_paragraph":"Para 58","rbi_char_offset":54181,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p57","layer":"bankpulse"},{"n":1,"claim":"md13129-b3e7d627","page_group":"Chapter XI. Repeal and other provisions","stored_section":"WHAT IT REPLACES","heading":"Old guidance repealed","plain_english":"The earlier governance circulars for small finance banks stand repealed.","rbi_paragraph":"Para 63","rbi_char_offset":55891,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p58","layer":"bankpulse"},{"n":2,"claim":"md13129-1079c38d","page_group":"Chapter XI. Repeal and other provisions","stored_section":"WHAT IT REPLACES","heading":"Old actions stay governed","plain_english":"Action already taken under the old rules stays governed by them.","rbi_paragraph":"Para 64","rbi_char_offset":56218,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13129#p59","layer":"bankpulse"}],"actions":[],"amendments":[{"id":"nt13556","title":"Reserve Bank of India (Small Finance Banks – Governance) Amendment Directions, 2026","date":"Jul 14, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13556&Mode=0","order":1,"layer":"rbi_source"},{"id":"nt13654","title":"Reserve Bank of India (Small Finance Banks – Governance) Third Amendment Directions, 2026","date":"Jul 30, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13654&Mode=0","order":2,"layer":"rbi_source"}],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}