(1) The Chairman shall hold office for such term not exceeding five years and shall receive such salary and allowances as the Central Government may, at the time of appointment, specify ¹[and shall be eligible for reappointment]:
²* * * * *

³[(1A) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the term of office of the Chairman at any time before the expiry of the term specified under that sub-section by giving him a notice of not less than three months in writing or three months salary and allowances in lieu of such notice.]

⁴[(1B) In the case of a vacancy in the office of the Chairman, the Managing Director shall perform the functions and duties of the Chairman during such vacancy.]
⁵[(2) Subject to the provisions contained in sub-section (5), a director appointed under clause (b) or clause (c) of sub-section (1) of section 6, shall hold office for such term, not exceeding three years, as the Central Government may specify in this behalf, ⁶*** and shall be eligible for reappointment:
Provided that no such director shall hold office continuously for a period exceeding six years.]

(3) The Central Government may, in consultation with the Reserve Bank, remove the Chairman at any time before the expiry of his term of office after giving him a reasonable opportunity of showing cause against the proposed removal.

⁷[(4) The Chairman and any other director, who is not an officer of the Central Government or a State State Government or an officer of the Reserve Bank or any body or corporation established by or under any Central Act or any State Act and owned or controlled by such Government, shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any of its committees and for attending to any other work of the National Bank.]

⁸[(5) The directors appointed under clauses (b) to (f) of sub-section (1) of section 6 shall hold office during the pleasure of the Central Government.]

1. Added by Act 55 of 2000, s. 6 (w.e.f. 1-2-2001).
2. The proviso omitted by Act 81 of 1985, s.18 (w.e.f. 1-5-1986).
3. Ins. by s. 18, ibid. (1-5-1986).
4. Ins. by Act 55 of 2000, s. 6 (w.e.f. 1-2-2001).
5. Subs. by Act 66 of 1988, s. 45, for sub-section (2) (w.e.f. 30-12-1988).
6. The words "and thereafter until his successor enters upon his office " omitted by Act 55 of 2000, s. 6 (w.e.f. 1-2-2001).
7. Subs. by Act 55 of 2000, s. 6, for sub-section (4) (w.e.f. 1-2-2001).
8. Ins. by Act 66 of 1988, s. 45 (w.e.f. 30-12-1988).