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The Reserve Bank of India has suggested the Non-Banking Finance Companies (NBFCs) form a nomination and remuneration committee (NRC) to set compensation for Key managerial persons KMPs. The nomination and remuneration committee is responsible for defining the remuneration, independence, and qualification parameters for directors and other key administrative personnel.
Key managerial persons include the chief executive officer or the managing director, the manager, the company secretary, the whole-time director, the chief financial officer, and any other prescribed officer.
RBI suggests the compensation of KMPs in NBFCs needs to be reasonable
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