[ 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, shall be the Chairman of the Board;]

[ a Deputy Governor or any other officer] [ Substituted by Act 56 of 1968, Section 5 (w.e.f. 10.3.1986 in Haryana).] of the Reserve Bank nominated by that bank;

an officer of the Central Government nominated by that Government;

[ 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;] [Substituted by Act 56 of 1968, Section 5 (w.e.f. 10.3.1986 in Haryana). ]

[ 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, corporation, 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.] [ Inserted by Act 21 of 1978, Section 8 (w.e.f. 15.7.1978).]

(2)

[(i) A director nominated under clause (b) [or clause (c) or clause (d) or clause (e)] [Substituted by Act 1 of 1984, Section 58, for sub-Section (2) (w.e.f. 15.2.1984). ][of sub-section (1), shall hold office during the pleasure of the authority nominating him; and

(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 [* * *][and shall be eligible for re-nomination: [Substituted by Act 66 of 1988, Section 24, for Clause (ii) (w.e.f. 30.12.1988). ]

(3)

A person shall not be capable of being nominated as a director under clause (d) [or clause (e)] [ Inserted by Act 1 of 1984, Section 58 (w.e.f. 15.2.1984).] 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.

(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 become vacant.]