DBOD.No.BC.54/08.95.004/98

June 10, 1998
Jyestha 20, 1920 (Saka)

The Chief Executives of all

Private Sector Banks

Dear Sir,

Section 35B of the Banking Regulation Act 1949 - Sitting fees payable to the directors/Travelling and Halting Allowance payable to the Chairmen and Chief Executive Officers/Managing Directors/Directors

We have been receiving requests from banks seeking revision in the sitting fees payable to their directors. It has been decided that banks may henceforth fix the sitting fees payable to the directors of the bank with the approval of their Board subject to compliance with the provisions of the Companies Act 1956, as well as the Travelling and Halting Allowance payable to the Chairman and Chief Executive Officer/Managing Director and other directors.

2. Banks need not henceforth approach us for approval under Section 35B of the Banking Regulation Act, 1949 in this regard.

Yours faithfully

(Smt. Chitra Chandramouliswaran)

General Manager