The Reserve Bank of India has directed private and foreign sector banks to get approved the salary that they offer to their CEO's. RBI has announced that the private sector bank officials can not get excessive salary.

No specifications have been mentioned by the apex bank on the matter. However, the private sector banks have been asked to keep a proper balance in the fixed and the variable salary offered.

In a notification, RBI said, "As hitherto, private sector and foreign banks operating in India would be required to obtain regulatory approval for grant of remuneration to whole time directors or chief executive officers in terms of Section 35B of the Banking Regulation Act, 1949."

It also said, "The approval process will involve an assessment whether the compensation policies and practices are in accordance with the Financial Stability Board (FSB) Principles."