Section Text
1 [10BB. Power of Reserve Bank to appoint [Chairman of the Board of directors appointed on a whole-timebasis or a managing director] of a bankingcompany
(1) Where the office, of the 2 [chairman ofthe board of directors appointed on a whole-time basis or a managing director] of a banking company is vacant, the Reserve Bankmay, if it is of opinion that the continuation of such vacancy is likely toadversely affect the interests of the banking company, appoint a personeligible under sub-section (4) of section 10B to be so appointed, to be the 2 [chairman ofthe board of directors appointed on a whole-time basis or a managing director]of the banking company and where the person so appointed is not a director ofsuch banking company, he shall, so long as he holds the office of the 2 [chairman ofthe board of directors appointed on a whole-time basis or a managing director], be deemed to be director of the banking company.
(2) The 3 [chairman ofthe board of directors appointed on a whole-lime basis or a managing director] so appointed by the Reserve Bank shall be in thewhole-time employment of the banking company and shall hold office for suchperiod not exceeding three years, as the Reserve Bank may specify, but shall,subject to other provisions of this Act, be eligible for reappointment.
(3) The 3 [chairman ofthe board of directors appointed on a whole-time basis or a managing director] so appointed by the Reserve Bank shall draw fromthe banking company such pay and allowances as the Reserve Bank may determineand may be removed from office only by the Reserve Bank.
(4) Save as otherwise provided inthis section, the provisions of section 10B shall, as far as may be, apply tothe 3 [chairmanof the board of directors appointed on a whole-time basis or a managingdirector] appointed by the Reserve Bank undersubsection (1) as they apply to a 3 [chairman of the board of directors appointed on awhole-time basis or a managing director]appointed by the banking company.]
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1. Inserted by Act 1 of 1984, Section 18 w.e.f. 15-2-1984.
2. Subsituted by Act 20 of 1994, Section 3 w.e.f. 31-1-1994.
3. Subsituted by Act 20 of 1994, Section 3 w.e.f. 31-1-1994.