RBI keeps private banks waiting on bonus payment to top executives

Silence linked to under-reporting of bad loans

The Reserve Bank of India (RBI) has started cracking down on bonuses to top executives at private sector banks.

According to sources familiar with the matter, the central bank is yet to grant its approval for bonuses to senior executives in private banks for 2016-17, even as the financial year 2017-18 has come to an end. Generally, the central bank grants its approval by mid-March, or latest by March 31, but most banks have not received RBI approval on bonus packages this year.

The bonus for 2017-18 will be decided only after the closing of annual accounts, but that will also be