Section 8. Composition of the Central Board, and term of office of Directors

8. "ShahadolKshetriyaGramin Bank, Shahadol (Madhya Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03-05.100/2009-10, dated 21st January, 2010. 8. Composition of the Central Board, and term of office of Directors.—[8] [(1) The Central Board shall consist of the following Directors, namely:— (a) a Governor and[9] [not more than four] Deputy Governors to be appointed by the Central Government; (b) four Directors to be nominated by the Central Government, one from each of the four Local Boards as constituted by section 9; - (c)[10] [ten] Directors to be nominated by the Central Government; and - (d) one Government official to be nominated by the Central Government.] (2) The Governor and Deputy Governors shall devote their whole time to the affairs of the Bank, and shall receive such salaries and allowances as may be determined by the Central Board, with the approval of the[5] [Central Government]: 11[Provided that the Central Board may, if in its opinion it is necessary in the public interest so to do, permit the Governor or a Deputy Governor to undertake, at the request of the Central Government or any State Government, such part-time honorary work, whether related to the purposes of this Act or not, as is not likely to interfere with his duties as Governor or Deputy Governor, as the case may be:] 12[Provided further that the Central Government may, in consultation with the Bank, appoint a Deputy Governor as the Chairman of the National Bank, on such terms and conditions as that Government may specify.] 8. The second proviso omitted by s. 7, ibid. (w.e.f. 1-11-1951). 9. Ins. by Act 23 of 1955, s. 52 and the Third Schedule (w.e.f. 1-7-1955). 10. Ins. by Act 10 of 1963, s. 47 and the Second Schedule (w.e.f. 1-5-1963). 11. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for "Agricultural Refinance and Development Corporation" (w.e.f. 12-7-1982). 12. Ins. by Act 47 of 1961, s. 51 and the Second Schedule (w.e.f. 1-1-1962). 13. The words "the Development Bank" omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004). 14. Subs. by Act 79 of 1956, s. 43 and the Second Schedule, for "or any of its subsidiary banks" (w.e.f. 22-10-1956). 15. Ins. by Act 19 of 1957, s. 2 (w.e.f. 8-6-1957). 16. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988). 17. Ins. by Act 38 of 1959, s. 64 and the Third Schedule (w.e.f. 10-9-1959). 18. The words "the Secretary of State" omitted by the A.O. 1948. 19. Subs., ibid ., for certain words. 20. The words "or the Government of Burma" omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947). 21. The words and letter "or any Part B State" omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951). 22. Ins. by Act 44 of 1949, s. 2. 23. The words "established under the Industrial Finance Corporation Act, 1948 (15 of 1948)" omitted by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978). 24. Ins. by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974). 25. Ins. by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951). (3) A Deputy Governor and the Director nominated under clause (d) of subsection (1) may attend any meeting of the Central Board and take part in its deliberations but shall not be entitled to vote: 1. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 4 (w.e.f. 1-1-1949). 2. Subs. by Act 11 of 1947, s. 5, for "Delhi, Madras and Rangoon" (w.e.f. 1-4-1947). 3. The words "and a branch in London" omitted by Act 24 of 1955, s. 3 (w.e.f. 8-5-1955). 4. The words "or Burma" omitted by Act 11 of 1947, s. 5 (w.e.f. 1-4-1947) which was earlier inserted by the M.O. 1937. 5. Subs. by the M.O. 1937, for "G.G. in C.". 6. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 7 (w.e.f. 1-1-1949). 7. Subs. by Act 32 of 1951, s. 5, for sub-section (3) (w.r.e.f. 1-1-1949). 8. Subs. by Act 62 of 1948, s. 7 and the Schedule, for sub-section (1) (w.e.f. 1-1-1949). 9. Subs. by Act 18 of 1964, s. 38 and the Second Schedule, for "three" (w.e.f. 1-7-1964). 10. Subs. by s. 38 and the Second Schedule, ibid ., for "six" (w.e.f. 1-7-1964). 11. Added by Act 35 of 1962, s. 2 (w.e.f. 15-9-1962). 12. Ins. by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982). 1[Provided that when the Governor is, for any reason, unable to attend any such meeting, a Deputy Governor authorised by him in this behalf in writing may vote for him at that meeting.] 8. "Baitarani Gramya Bank, Baripada (Odisha)" excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013-14, dated 22nd October, 2011. 26. Subs. by Act 51 of 1974, s. 6, for "any such person" (w.e.f. 13-12-1974). 27. Added by Act 23 of 1947, s. 3 (w.e.f. 18-4-1947). (c) the collection of the proceeds, whether principal, interest or dividends, of any securities or shares; (d) the remittance of such proceeds, at the risk of the principal, by bills of exchange payable either in India or elsewhere; - (e) the management of public debt; 1[(f) 2* the issue and management of 3* bonds and debentures;] - 4[(11A) the acting as agent for the Central Government, — 5 [(a) in guaranteeing the due performance by any small-scale industrial concern, approved by the Central Government, of its obligations to any bank or other financial institution in respect of loans and advances made, or other credit facilities provided, to it by such bank or other financial institution and the making as such agent of payments in connection with such guarantee, and] (b) in administering any scheme for subsidising the rate of interest or other charges in relation to any loans or advances made, or other credit facilities provided, by banks or other financial institutions for the purpose of financing or facilitating any export from India and the making as such agent of payments on behalf of the Central Government;] (4) The Governor and a Deputy Governor shall hold office for such term not exceeding five years as the[2] [Central Government] may fix when appointing them, and shall be eligible for re-appointment. 3[A Director nominated under clause (c) of sub-section (1) shall 4* hold office for a period of four years[5] [and[6] [shall be eligible for reappointment: Provided that any such Director shall not be appointed for more than two terms, that is, for a maximum period of eight years either continuously or intermittently.]]] A Director nominated under clause (d) of sub-section (1) shall hold office during the pleasure of the[2] [Central Government.] (5) No act or proceeding of the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Board. 7[8* * * * * (7) A retiring Director shall be eligible for re-nomination.] 8. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013. 6[(12) the purchase and sale of gold or silver coins and gold and silver bullion and foreign exchange and the opening of a gold account with the principal currency authority of any foreign country or the Bank for International Settlements or any international or regional bank or financial institution formed by such principal currency authority or authorities or by the Government of any foreign country;] 7[(12A) the purchase and sale of securities issued by the Government of any country outside India or by any institution or body corporate established outside India and expressed to be payable in a foreign currency or any international or composite currency unit, being in the case of purchase by the Bank securities maturing within a period of ten years from the date of purchase: Provided that in the case of securities of an institution or body corporate, the repayment of principal and payment of interest in respect of such securities shall be guaranteed by the Government of the country concerned;] 8[(12AA) lending or borrowing of securities of the Central Government or a State Government or of such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities; - (12AB) dealing in repo or reverse repo: Provided that lending or borrowing of funds by way of repo or reverse repo shall not be subject to any limitation contained in this section. Explanation . — For the purposes of this clause, — (a) "repo" means an instrument for borrowing funds by selling securities of the Central Government or a State Government or of such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed; 1. Ins. by Act 44 of 1949, s. 2. 2. The words "in respect of the aforesaid Corporation" omitted by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974). 8. "BhojpurRohtasGramin Bank, Arrah (Bihar)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/200809, dated 22nd September, 2008. 8. Included by RBI Notification No. DBOD.IBD. No. 16082/23.13.127/2009-10, dated 19th March, 2010. 8. "Durg-RajanandgaonGramin Bank, Rajanandgaon, Chhattisgarh" excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 99/03.05.100/2013-14, dated 8th May, 2014. 8. "Golconda Gramin Bank, Hyderabad (Andhra Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated 22nd September, 2008. 8. "HindonGramin Bank, Ghaziabad (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 95/03.05.100/2013-14, dated 9th April, 2014. 8. "JamunaGramin Bank, Agra (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/200809, dated 22nd September, 2008. 8. "KashiGramin Bank, Varanasi (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated 22nd September, 2008. 8. "Lord Krishna Bank" excluded by Notification DBOD. No. PSBD.2536/16.01.130/2007-08, dated 6th September, 2007. 9. "LucknowKshetriyaGramin Bank, Sitapur (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 11379/3.5.100/2010-11, dated 31st March, 2011. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September; 2008. 8. "ManjiraGrameena Bank, Sangareddy, Medak (Andhra Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated 22nd September, 2008. 8. "NalandaGramin Bank, Biharshariff (Bihar)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/200809, dated 22nd September, 2008. 8. "PanchamahalGramin Bank, Godhra (Gujarat)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated 22nd September, 2008. 8. Included by RBI Notification No. RPCD.CO. RRB. No. 46/03.05.100/2013-14, dated 22nd October 2013. 8. "RushikulyaGramya Bank, Berhampur, Orissa" excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/201314, dated 22nd October 2013. 8. "SravasthiGramin Bank, Bahraich (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated 22nd September, 2008. 8. Included by Notification No. DBOD.IBD. No. 13982/23.03.022/2010-11, dated 8th March, 2011. 8. "VishveshwarayaGrameena Bank, Mandya (Karnataka)" excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013-14, dated 22nd October 2013. 9. Subs. by Notification No. PSBS.59[6] /16.01.67[7] /2002-2003, dated 21st November, 2002.