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Banks should recognise fair value of share-linked incentives to CEOs/ WTDs as expense in their books of accounts: RBI

August 31, 2021
RBI had issued guidelines on the compensation of whole-time directors/ chief executive officers/ material risk takers and control function staff and now it has been observed that banks do not recognise grant of the share-linked compensation as an expense in their books of account concurrently. Therefore, clarification has been issued that the fair value thus arrived at should be recognised as expense beginning with the accounting period for which approval has been granted.
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