(1) The Board of directors of the Corporation shall consist of the following, namely:—

¹[(a) the Governor, for the time being, of the Reserve Bank or, if the Reserve Bank, in pursuance of the decision of the Committee of the Central Board of Directors of that Bank, nominates any Deputy Governor for the purpose, the Deputy Governor so nominated, who shall be the Chairman of the Board;]

(b) ²[a Deputy Governor or any other officer] of the Reserve Bank nominated by that bank;

(c) an officer of the Central Government nominated by that Government;

³[(d) five directors nominated by the Central Government in consultation with the Reserve Bank, three of whom shall be persons having special knowledge of commercial banking, insurance, commerce, industry or finance and two of whom shall be persons having special knowledge of, or experience in, co-operative banking or co-operative movement and none of the directors shall be an officer of Government or of the Reserve Bank or an officer or other employee of the Corporation or a director, an officer or other employee of a banking company or a co-operative bank or otherwise actively connected with a banking company or a co-operative bank].

⁴[(e) four directors, nominated by the Central Government in consultation with the Reserve Bank, having special knowledge or practical experience in respect of accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law or small-scale industry or any other matter, the special knowledge of, and practical experience in which, is likely, in the opinion of the Central Government to be useful to the Corporation.]

⁵[(2)(i). A director nominated under clause (b) or clause (c) ⁶[or clause (d) or clause (e)] of sub-section (1) shall hold office during the pleasure of the authority nominating him; and

⁷[(ii) Subject to the provisions contained in clause (i), a director nominated under clause (d) or clause (e) of sub-section (1), shall hold office for such period, not exceeding three years, as may be specified by the Central Government in this behalf, ⁸*** and shall be eligible for re-nomination:

Provided that no such director shall hold office continuously for a period exceeding six years.]]

(3) A person shall not be capable of being nominated as a director under clause (d) ⁹[or clause (e)] of sub-section (1) if—

(a) he has been removed or dismissed from the service of Government or of a local authority or of a corporation or company in which not less than fifty-one per cent. of the paid-up share capital is held by Government; or

(b) he is or at any time has been adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or

(c) he is of unsound mind and stands so declared by a competent Court; or

(d) he has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude.

(4) If a director nominated under clause (d) of sub-section (1)—

(a) becomes subject to any of the disqualifications mentioned in clauses (a) to (d) of sub-section (3); or

(b) is absent without leave of the Board for more than three consecutive meetings thereof; or

(c) becomes a director or an officer or an employee of an insured bank or is, in the opinion of the Central Government, otherwise actively connected with such bank; or

(d) becomes an officer or other employee of Government or of the Reserve Bank or of the Corporation;

his seat shall thereupon become vacant.

¹⁰[(5) If a director nominated under clause (e) of sub-section (1)—

(a) becomes subject to any of the disqualifications mentioned in clauses (a) to (d) of sub-section (3); or

(b) is absent without leave of the Board for more than three consecutive meetings thereof,

his seat shall thereupon becomes vacant.]

1. Subs. by s. 8, ibid., for clause (a) (w.e.f. 15-7-1978).
2. Subs. by Act 56 of 1968, s. 5, for "a Deputy Governor " (w.e.f. 7-5-1970).
3. Subs. by Act 56 of 1968, s. 5, for clause (d) (w.e.f. 10-3-1986).
4. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
5. Subs. by Act 1 of 1984, s. 58, for sub-section (2) (w.e.f. 15-2-1984).
6. Ins. by Act 66 of 1988, s. 24 (w.e.f. 30-12-1988).
7. Subs. by s. 24, ibid., for clause (ii) (w.e.f. 30-12-1988).
8. The words "and thereafter until his successor assumes office " omitted by Act 45 of 2006, s. 17 (w.e.f. 16-10-2006).
9. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).
10. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).