Section 10 - Disqualifications of Directors and members of Local
Boards : RBI Act 1934
What is Disqualifications of Directors and members of Local Boards?
Section 10 of Reserve Bank of India Act 1934
Section 10 of RBI Act 1934 : "Disqualifications of Directors and
members of Local Boards"
(1) No person may be a Director or a member of a
Local Board who-
(a) is a salaried Government official, or
(b) is, or at any time has been, adjudicated an insolvent, or
has suspended payment or has compounded with his creditors, or
(c) is found lunatic or becomes of unsound mind, or
(d) is an officer or employee of any bank, or
(e) is a director of a banking company within the meaning of
clause (c) of section 5 of the Banking Regulation Act, 1949 (10
of 1949) or of a co-operative bank.
(2) No two persons who are partners of the same
mercantile firm, or are Directors of the same private
company, or one of whom is the general agent of or holds
a power of procuration from the other, or from a
mercantile firm of which the other is a partner, may be
Directors or members of the same Local Board at the same
(3) Nothing in clause (a), clause (d) or clause (e) of
sub-section (1) shall apply to the Governor, or to a Deputy
Governor or to the Director nominated under clause (d) of
sub-section (1) of section 8.