{"id":304122,"date":"2026-06-20T08:56:48","date_gmt":"2026-06-20T03:11:48","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=304122"},"modified":"2026-06-20T09:00:04","modified_gmt":"2026-06-20T03:15:04","slug":"nepal-rastra-bank-nrb-has-tightened-the-salary-of-bank-ceos-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/nepal-rastra-bank-nrb-has-tightened-the-salary-of-bank-ceos-2\/","title":{"rendered":"Nepal Rastra Bank (NRB) has tightened the salary of bank CEOs."},"content":{"rendered":"

Kathmandu. Nepal Rastra Bank (NRB) has decided to fix the salary of chief executive officers (CEOs) of banks and financial institutions. <\/p>\n

The central bank has issued guidelines on salary, allowances and other facilities of banks and financial institutions to control arbitrary salary fixation. According to the guidelines, banks and financial institutions will now have to follow the new standards of CEO fixed annual salary and allowances. <\/p>\n

As per the guidelines, commercial banks will now be able to determine their salary and allowances on the basis of average employee expenditure of the last 3 fiscal years and the total assets of the previous year. Accordingly, commercial banks will get a maximum of 2 percent of the average employee expenditure of the last three fiscal years or a maximum of 0.015 percent of the total assets of the previous year. <\/p>\n

Similarly, the ‘B’ class national level development banks can spend up to 3 percent of the average staff expenditure of the last three fiscal years or a maximum of 0.020 percent of the total assets of the previous year on salary and allowances of the CEO. <\/p>\n

The ‘C’ class finance companies can spend up to 0.10 percent of the total assets of the previous year while the ‘D’ class microfinance companies can spend up to 0.050 percent of the total assets of the CEO. <\/p>\n

In the case of other banks and financial institutions, the limit of certain annual salary and allowances will be as determined by the Board of Directors on the recommendation of the recommendation committee. While determining the salary of the CEO, the basic pay scale, whether or not the annual grade will be increased and the basic pay scale should not be reviewed. <\/p>\n

If there is a provision to periodically review certain annual salary and allowances to be paid to the CEO in the agreement between the banks and financial institutions and the CEO, the review will have to be done on the basis of inflation (average inflation during the review period) published by the Nepal Rastra Bank. The amount so increased shall be subject to the prescribed ceiling in the case of the aforementioned institutions and in the case of other banks and financial institutions, the salary, allowances and other facilities shall be subject to the limit as determined by the Board of Directors on the recommendation of the recommendation committee. <\/p>\n

Organizations that have a certain annual salary and allowance that the contractual CEO has been receiving before the date of approval of this guideline will have to maintain the prescribed limit within the prescribed limit after the release of this guideline. <\/p>\n

Performance-based remuneration{<\/strong><\/span><\/p>\n

}<\/p>\n

A performance-based remuneration licensee may provide a certain percentage of the total financial benefits provided to the CEO annually. While providing such facilities, the basis for evaluating the overall performance should be determined by analyzing the qualitative and quantitative variables of the previous fiscal year. <\/p>\n

Before determining the remuneration based on performance, the performance criteria index should be determined by analyzing the following indicators: <\/p>\n