Section 11 of the Reserve Bank of India Act, 1934 - Removal from and Vacation of Office
Section 11 regulates how the Governor, Deputy Governors, other Directors and members of RBI Local Boards may be removed from office or may cease to hold office. It also deals with absence from Central Board meetings, statutory disqualifications, membership of Parliament or a State Legislature, and resignation.
Section 11(1) - Power of Central Government to remove
The Central Government may remove from office the Governor, a Deputy Governor, any other Director, or any member of a Local Board.
Section 11(2) - Absence from three consecutive Central Board meetings
A Director nominated under Section 8(1)(b) or Section 8(1)(c) ceases to hold office if, without leave from the Central Board, the Director is absent from three consecutive meetings of the Board convened under Section 13(1).
The provision is limited to the categories of nominated Directors expressly identified in Section 11(2), and the consequence arises where the three consecutive absences are without leave of the Central Board.
Section 11(3) - Removal on becoming disqualified
The Central Government must remove a Director, and the Central Board must remove a member of a Local Board, if the Director or member becomes subject to a disqualification specified in Section 10(1) or Section 10(2).
Section 10 contains the relevant eligibility restrictions, including specified disqualifications and restrictions affecting persons having certain business, company or agency relationships.
Section 11(4) - Temporary bar on reappointment
A Director or Local Board member removed or ceasing to hold office under the preceding subsections is not eligible for reappointment as a Director or Local Board member until the term for which the original appointment was made has expired.
Section 11(5) - Membership of Parliament or State Legislature
If a person nominated as a Director or member of a Local Board is already a member of Parliament or of a State Legislature, the nomination is void unless that person ceases to be such a member within two months from the date of nomination.
If an existing Director or Local Board member is subsequently elected or nominated as a member of Parliament or such a Legislature, the person ceases to be a Director or Local Board member from the date of that election or nomination.
Section 11(6) - Resignation
A Director may resign office to the Central Government, while a member of a Local Board may resign office to the Central Board. The office becomes vacant when the resignation is accepted.
Legal effect of Section 11
- Removal power: the Central Government has the statutory removal power described in subsection (1).
- Attendance requirement: specified nominated Directors may automatically cease to hold office after three consecutive unapproved absences from meetings convened under Section 13(1).
- Disqualification: Section 11 links removal directly to the disqualifications in Section 10.
- Legislative membership: the Act restricts simultaneous service as a nominated RBI Director or Local Board member and as a member of Parliament or a State Legislature in the manner stated in subsection (5).
- Resignation takes effect on acceptance: the office becomes vacant upon acceptance by the authority specified in subsection (6).