Section 10A: Board of directors to include persons with professional or other experience.

Q: What does Section 10A of The Banking Regulation Act, 1949 (BR Act) deal with?

Section 10A BR Act pertains to "Board of directors to include persons with professional or other experience.". It is part of the The Banking Regulation Act, 1949, a legislation enacted by the Parliament of India. Section 10A of The Banking Regulation Act, 1949 (BR Act) governs board of directors to include persons with professional or other experience. As verified on 22 May 2026.

Q: Is Section 10A BR Act still in force?

Yes, Section 10A of the The Banking Regulation Act, 1949 is currently in force across the Republic of India.

Q: What is धारा 10A BR Act?

धारा 10A BR Act is the Devanagari Hindi reference for Section 10A of the The Banking Regulation Act, 1949. Section 10A of The Banking Regulation Act, 1949 (BR Act) governs board of directors to include persons with professional or other experience. As verified on 22 May 2026.

Q: What is Dhara 10A BR Act?

Dhara 10A BR Act is the Roman Hindi reference for Section 10A of the The Banking Regulation Act, 1949. "Dhara" means "Section" in Hindi. Section 10A of The Banking Regulation Act, 1949 (BR Act) governs board of directors to include persons with professional or other experience. As verified on 22 May 2026.

Q: How to cite Section 10A of The Banking Regulation Act, 1949?

Cite as: "Section 10A, The Banking Regulation Act, 1949 (BR Act)" in legal briefs. For academic writing, use the BlueBook format: The Banking Regulation Act, 1949, 1949, § 10A (India).

Law on Tips Editorial Board

1[10A. Board of directors to include persons with professional or other experience.—(1) Notwithstanding anything contained in any other law for the time being in force, every banking company,—

shall comply with the requirements of this section:

Provided that nothing contained in this sub-section shall apply to a banking company referred to in clause (a) for a period of three months from such commencement.

(2) Not less than fifty-one per cent. of the total number of members of the Board of directors of a banking company shall consist of persons, who—

Provided that out of the aforesaid number of directors, not less than two shall be persons having special knowledge or practical experience in respect of agriculture and rural economy, co-operation or small-scale industry; and

(1) have substantial interest in, or be connected with, whether as employee, manager or managing agent,—

(2) be proprietors of any trading, commercial or industrial concern, not being a small-scale industrial concern.

2[(2A) Notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force,—

(3) If, in respect of any banking company, the requirements, as laid down in sub-section (2), are not fulfilled at any time, the Board of directors of such banking company shall re-constitute such Board so as to ensure that the said requirements are fulfilled.

(4) If, for the purpose of re-constituting the Board under sub-section (3), it is necessary to retire any director or directors, the Board may, by lots drawn in such manner as may be prescribed, decide which director or directors shall cease to hold office and such decision shall be binding on every director of the Board.

(5) Where the Reserve Bank is of opinion that the composition of the Board of directors of a banking company is such that it does not fulfil the requirements of sub-section (2), it may, after giving to such banking company a reasonable opportunity of being heard, by an order in writing, direct the banking company to so re-constitute its Board of directors as to ensure that the said requirements are fulfilled and, if within two months from the date of receipt of that order, the banking company does not comply with the directions made by the Reserve Bank, that Bank may, after determining, by lots drawn in such manner as may be prescribed, the person who ought to be removed from the membership of the Board of directors, remove such person from the office of the director of such banking company and with a view to complying with the provisions of sub-section (2), appoint a suitable person as a member of the Board of directors in the place of the person so removed whereupon the person so appointed shall be deemed to have been duly elected by the banking company as its director.

(6) Every appointment, removal or reconstitution duly made, and every election duly held, under this section shall be final and shall not be called into question in any court.

(7) Every director elected or, as the case may be, appointed under this section shall hold office until the date up to which his predecessor would have held office, if the election had not been held, or, as the case may be, the appointment had not been made.

(8) No act or proceeding of the Board of directors of a banking company shall be invalid by reason only of any defect in the composition thereof or on the ground that it is subsequently discovered that any of its members did not fulfil the requirements of this section. 1. Ins. by Act 58 of 1968, s. 3 (w.e.f. 1-2-1969). 2. Ins. by Act 1 of 1984, s. 16 (w.e.f. 15-2-1984).