 bill no 202 of  2017 the reserve bank of india (amendment) bill, 2017 by shri konda vishweshwar reddy, mp a billfurther to amend the reserve bank of india act, 1934be  it enacted by parliament in the sixty-eighth year of the republic of india as follows:—1 (1) this act may be called the reserve bank of india (amendment) act, 2017short title, and commencement(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint:provided that different dates may be appointed for different provisions of this act and any reference in any such provision to the commencement of this act shall be construed as a reference to the commencement of that provision2 of 1934amendment of section 22 in section 2 of the reserve bank of india act, 1934 (hereinafter referred to as the principal act),—5(a) the existing clause (aii) and (aiii) shall be re-numbered as clauses (ai) and (aii), respectively and before the clause (ai) as so re-numbered, the following clause shall be inserted, namely:—"(a) "annual report" means the annual report of the bank under this act;"; (b) after clause (cii), the following clause shall be inserted, namely:—(ciii) "inquiry committee" means the inquiry committee constituted under section 11a;";10(c) after clause (ccc), the following clause shall be inserted, namely:—"(ccci) "non-executive director" means a director of central board other than the governor, deputy governor and government nominated director;"; (d) after clause (cccci), the following clause shall be inserted, namely:—15"(ccccii) "publish" means publishing of information in manner best suited to bring it to attention of the person who are affected by the information and to public at large, including by way of electronic means, as soon as may be practicable;"; and (e) after clause (cv), the following clause shall be inserted, namely:—"(cvi) "regulations" means the regulations made under this act;"20amendment of section 73 in section 7 of the principal act, for sub-section (3), the following sub-sections shall be substituted, namely:—25"(3) the central board may, by notification in the official gazette, make regulations delegating the functions of the board to the governor or any other director or employee of the bank, subject to any condition that may be provided in the regulations, as the case may be:provided that the central board shall not delegate the functions mentioned under sub-section (4) of this section, sub-section (7) of section 45zt, sub-section (3)of section 45zu and sub-section (1a) of section 58 of this act30(4) save as otherwise provided in this act, the governor, and in his absence a deputy governor nominated by him in this behalf shall have the powers of the general direction and control in respect of all administrative matters of the bank(5) the central board shall review the performance of the bank in giving effect to the objectives, carrying out the functions and utilizing the resources of the bank in such manner as may be prescribed354 in section 8 of the principal act,—amendment of section 8(a) in sub-section (1),—(i) in clause (a) for the words "not more than four", the words "at least two and not more than four" shall be substituted;(ii) clause (b) shall be omitted; and40(iii) for clause (c), the following clause shall be substituted, namely:—"(c) at least two and not more than five non-executive directors to be appointed by the central government;";(iv) in clause (d) for the words "two government officials", the words "at least one and not more than two government officials" shall be substituted;(b) in sub-section (3),—(i) the words "a deputy governor and" shall be omitted; and (ii) the proviso thereto shall be omitted;(c) in sub-section (4) for the words "not exceeding five years", the words "which shall not be less than three years but which may extend upto five years"; and5(d) after sub-section (7), the following sub-section shall be inserted, namely:—"(8) the terms on which a director is appointed shall not be varied to his disadvantage after appointment"5 in section 10 of the principal act,—amendment of section 1010(i) in sub-section (1), after clause (e), the following clauses shall be inserted, namely:—"(f) is a member of parliament, state legislature, a local legislature under part viii of the constitution of india, a panchayat or a municipality;15(g) has served as the chairperson of other financial regulators namely securities and exchange board of india, insurance regulatory and development authority and pension fund regulatory and development authority"; and (ii) after sub-section (3), the following sub-section shall be inserted, namely:—20"(4) a person cannot be appointed as the director if that person is a director of the monetary policy committee constituted under section 45zb unless that person is the governor or a deputy governor designated to serve on the monetary policy committee6 after section 10 of the principal act, the following section shall be inserted, namely:—insertion of new section 10a selection of certain directors25"10a (1) the central government shall, for the purposes of nomination of directors under clause (d) of sub-section (1) of section 8, constitute a selection committee for shortlisting of persons to be appointed as a director in accordance with provision of the sixth schedule(2) the selection committee constituted under sub-section (1) shall follow the procedure laid down in the sixth schedule(3) the selection committee shall, while considering the shortlisting of persons to be appointed as directors, take into account following factors,—30(a) merit;(b) balance of the central board; (c) independence; and(d) conflict of interestexplanation—for the purposes of sub-section (3),—35(a) "merit" means qualifications, experience and expertise, as per the conditions of eligibility for appointment to the central board of that financial agency;40(b) "balance of the central board" means that the central boardproportionately and adequately represents different skills and expertise as per the conditions of eligibility for directors;(c) "indpendence" means the ability to maintain and exercise independentjudgement in the discharge of duties; and(d) "conflict of interest" means that person appointed do not have interests which may conflict with the duties of that director"7 in section 11 of the principal act,—amendment of section 11(i) in sub-section (2), the words 'clause (b) or' shall be omitted;(ii) after sub-section (3), the following sub-section shall be inserted, namely;5"(3a) notwithstanding anything contained in sub-section (3), the central government shall remove from office any director if he has—(a) been adjudged insolvent;10(b) been sentenced to imprisonment  for one hundred and eighty days or more;(c) been convicted of an offence involving moral turpitude; (d) acquired any financial or other interest contrary to the terms and conditions of his service that is likely to prejudice his functions;(e) failed to adequately disclose any direct or indirect pecuniary interest;15(f) made any material misrepresentation to the selection committee; (g) abused his position so as to render his continuance in office prejudicial to the objectives of the bank;(h) become physically incapable of discharging his duties; (i) become of unsound mind"; and20(iii) in sub-section (5), the words "the nomination as director or member of a local board of any person who is a member of parliament or the legislature of any state shall be void, unless, within two months of the date of his nomination, he ceases to be such member, and," shall be omitted8 after section 11 of the principal act, the following section shall be inserted, namely:—insertion of new sections 11a and 11b25procedure for removal of a director"11a (1) the central government shall, for the purposes of removal of a director appointed under this act, constitute an inquiry committee to inquire into the grounds specified in sub-section (3a) of section 11 for removal of a director(2) the inquiry committee shall consist of,—30(a) two sitting or retired judges of the supreme court or a high court;and(b) one independent expert having experience in the field of finance and public administration, to be nominated by the central government, in consultation with the chief justice of india in such manner as may be prescribed35(3) the inquiry committee shall be chaired by the senior-most judge from amongst the judges nominated under clause (a) of sub-section (2)(4) the inquiry committee shall, prior to removal of a director from his office,—(a) issue him an inquiry notice; and (b) provide him a reasonable opportunity of being heard40(5) the central government shall provide the inquiry committee, in writing, all facts and information relevant for the removal of the director(6) the inquiry committee shall, within thirty days from the date of issue of notice under clause (a) of sub-section (4), submit a written report to the central govenrment stating,—(a) whether the grounds on which the central government proposes toremove the director have been met; and5(b) the facts and reasons in support of its opinion(7) if the report of the inquiry committee under sub-section (6) states that any ground for removal has been met, then the central government shall publish,—(a) a notification for removal of the director from the central board; and (b) the report made under sub-section (6)10(8) every notification under clause (a) of sub-section (7) shall be published within a period of thirty days from the date of submission of the report by the inquiry committee:15provided that if the central government had issued a suspension order under section 11b then the notification shall be published within a period of fifteen days from the date of submission of the report by the inquiry committee(9) the director shall cease to hold office from the date of publication of the notification under sub-section (7)explanation—for the purposes of his section, "inquiry notice" means a notice which—20(a) is in writing; (b) states the grounds on which the director is proposed to be removed; (c) contains all the facts and information provided to the inquiry committeeby the central government; and25(d) allows the director to make written representations to the inquirycommittee against such proposed removal within a reasonable time stated in that notice(10) the central government shall allocate adequate resources to the inquiry committee for carrying out its functions efficiently30procedure for suspension of a director11b (1) where the central board is satisfied that any of the grounds mentioned under sub-section (3a) of section 11 for removal of a director have been met, it may recommend to the central government the temporary suspension of such director(2) every recommendation made under sub-section (1) to the central government shall,—(a) be in writing and signed by all directors of the central board; and35(b) not bind the central government to suspend the concerned director(3) where the central government accepts the recommendation of the central board, it shall—(a) issue a suspension order; and40(b) constitute the inquiry committee within fifteen days from the date ofissue of such suspension order(4) the inquiry committee shall, in writing, recommend the temporary suspension of a director to the central government which shall be binding on it(5) every suspension order issued under sub-section (3) shall,—(a) be in writing;45(b) be made after giving the concerned director a reasonable opportunity of being heard;(c) state the reasons for suspension; (d) be accompanied with the recommendation of the central board or the inquiry committee, as the case may be; and5(e) cease to have effect on the date on which the inquiry committee submits its report under sub-section (6) of section (11a) (6) the central government may reverse a suspension order issued under subsection (3) if,—10(a) the recommendation for suspension made by the central board and the inquiry committee has not been established, on a written recommendation of the central board signed by all directors of the central board; and(b) in all other cases, on a written recommendation by the inquiry committee(7) every director suspended under this section shall be entitled to such salary, allowances and other benefits as per the conditions of service applicable to him"9 in section 12 of the principal act,—amendment of section 1215(i)  in sub-section (1), after words "appoint", the words ",within fifteen days from the date of occurrence of vacancy," shall be inserted;(ii) in sub-section (4), after words "central government", the words "within onehundred and twenty days from the occurrence of the vacancy" shall be inserted; and(iii) after sub-section (4), the following proviso shall be inserted, namely:—20"provided that the casual vacancy shall not reduce the minimum strength of the central board below six"10 for section 13 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 1325"13 (1) every meeting of the central board shall be held in accordance with the provisions of the seventh schedulemeetings of the central board(2) the central board shall make regulations consistent with the requirements of the seventh schedule to regulate the proceedings of its meetings(3) the central board shall discharge its duties by taking decisions through a majority vote of the directors present at the meeting(4) every director shall have one vote:30provided that if there is an equality of votes, the person chairing the meeting shall, unless otherwise stipulated in the regulations have a casting vote35(5) any director who has any direct or indirect interest in any matter likely to come up for consideration at a meeting of the central board shall, as soon as possible, after the relevant circumstances have come to his knowledge, disclose the nature of his interest to the central board(6) every disclosure made by a director under sub-section (5) shall be recorded in the proceedings of the meeting of the central board at which the matter comes up for discussion and that director shall recuse from any deliberation or decision of the central board with respect to that matter40(7) no act or proceeding of the central board shall be invalid merely by reason of,—(a) any vacancy or defect, in the constitution of the board; or (b) any defect in the appointment of a person as a director; or(c) any violation of the regulations of the bank not affecting the merits of the decision"11 after chapter iiif of the principal act, the following new chapter iiig shall be inserted namely:—insertion of new chapter iiif "chapter iiig5 accountability mechanism for bank45zp (1) the central board shall evaluate the performance of each director in such manner as may be prescribedreview of performance of central board10(2) the central board shall make regulations stipulating the process to be followed by it for evaluating the performance of its directors, including the requirement of a director to recuse himself from deliberations or decisions involving an evaluation of his performanceaudit committee45zq (1) the central board shall establish an audit committee consisting of at least two non-executive directors to review whether—(a) the bank is in compliance with applicable laws;15(b) the regulations of the bank promote transparency and best practices of governance;(c) the bank is in compliance with the decisions of the central board; and (d) the bank is managing risks to its functioning in a reasonable manner20(2) the audit committee shall make a report, at least once every financial year, of its findings under this section, to the central board and the report shall be attached with the annual report(3) the audit committee shall maintain a system by which any person may communicate to the audit committee, any incidence of—(a) violation of laws by the bank;25(b) theft or misappropriation of resources of the bank by any person; (c) abuse of powers of the bank by any director, employee or agent of the bank; or30(d) violation of any decision of the central board by any director, employee or agent of the bank (4)  the central board shall make regulations  governing information to be provided to the audit committee, and the provision of adequate resources to enable the audit committee to discharge its functions under this act effectively(5) every director of the audit committee shall not serve for more than five years continuously in that committee35publication of information45zr (1) the bank shall maintain a website or any other universally accessible repository of electronic information to—(a) publish all information that the bank is obliged to publish under this act or any other law;40(b) provide a copy of all rules, regulations, regulations made and all guidance issued, by the bank including all amendments to these rules, regulations, regulations and guidance;(c) provide information about the manner in which applications to thebank are to be made; and(d) provide material information about the functions of the bank(2) the central board shall review the quality of the website or other repository, based on international best practices, at least once every three years5(3) the central board shall prepare and publish the report regarding the findings of the review conducted under sub-section (2) of this section along with the annual report(4) the bank may make regulations for effective implementation of the provisions of this section10(5) any information not published on the website or other universally accessible repository of the bank as per the requirements of this section shall be presumed to not have been published, for the purposes of this act45zs (1) the bank shall prepare a report of expenditure with respect to each of its functions and objectives for each financial yearallocation and use of resources by the bank15(2) the bank shall maintain a system of allocation of resources to carry out its functions and meet its objectives as stated in its report of expenditure(3) the central government may prescribe additional reports which the bank shall prepare relating to its expenditure20(4) the central board shall, at least once every three years, review the quality of the report of bank and its system of allocation of resources to ensure compliance with the provisions of this section(5) the reports of expenditure shall be published with the annual report of the bank in such manner as may be prescribed45zt (1) the bank shall develop a system to measure its performance of each function required to be carried out, and the efficiency with which that function was discharged25performance and the efficiency of the bank(2) the bank shall made regulations setting out the system of measurement referred to in sub-section (1)(3) the bank shall lay down goals for the discharge of each function imposed on it by this act for the financial year30(4) the bank shall measure its efficiency in relation to its functions in accordance with the system developed under sub-section (1) in a reasonable and objective manner for each financial year35(5) the bank shall at the end of each financial year prepare a report comparing information from sub-section (4) with the goals that were set for the financial year under sub-section (3)(6) the central government shall prescribe additional reports which the bank shall make relating to the performance and discharge of its functions40(7) the central board shall, at least once every three years, review the  quality of the report made under sub-section (6) to ensure compliance with the requirements of this section(8) the report of efficiency and performance shall be published with the annual reportexplanation— for the purposes of this section, "reasonable and objective manner", in relation to the system of measurement includes,—(a) a system of measurement that best represents any function being measured;(b) a standardised system that allows comparison, where possible; and (c) quantititive systems of measurement, where possiblereturns and reports45zu (1) the bank shall furnish to the central government at such time reports, and in such manner and form containing such returns, statements and particulars, with regard to proposed or existing operations of the bank as may be prescribed5(2) the bank shall prepare and transmit to the central government a weekly account of the issue department and of the banking department in such form as the central government may, by notification in the gazette of india, prescribe10(3) the central government shall cause every account mentioned under subsection (2) to be published in the gazette of india at such intervals and in such modified form as it may deem fit(4) the central board shall submit to the central government an annual report within ninety days from the end of every financial year15(5) the central board shall publish the annual report on the same day as or before the date on which it is submitted to the central government(6) the annual report shall be in such manner and form as may be prescribed, and must give a true and full account of the performance of the bank in the previous financial year including,—(a) a review of  its activities in relation to the discharge of its functions and the achievement of its objectives; and20(b) all information that is necessary to understand the discharge of functions and the achievement of the objectives that has been published by the bank (7) the annual report shall contain,—(a) the report of the review committee established under section 45zq;25(b) findings of the review of the quality of the website or other repositorymade under section 45zr;(c) report of expenditure submitted under section 45zs;(d) report on the performance and efficiency of the bank submitted undersection 45zt;30(e) certified accounts, audit report, and the observations of the central board made under section 45zv;(f) with respect to the bank,—(i) description of the business of the central government carried out by the bank;35(ii) description of the business of state governments carried out by the bank; (g) a statement of the deliberations of the bank accompanied by the records of its meetings;40(h) a statement indicating any statutory obligation that the bank or the central board has not complied with, and reasons for such non-compliance;(i) a statement by the governor, in relation to the activities and performanceof the bank;45(j) a statement of major activities the bank is planning to undertake in thesubsequent financial year; and(l) a statement which any director of the central board may wish to include5(7) the central government shall lay a copy of the annual report, as soon as possible, after its receipt before each house of parliament, for a total period of thirty working days to be calculated in the manner specified under sub-section (4) of section 58 of this actaccounts and audit45zv (1) the bank shall, in consultation with the comptroller and auditor-general of india maintain accounts and other relevant records and audit prepare an annual statement of accounts in such form as may be prescribed10(2) the bank, shall, while preparing its financial statements, comply with accounting standards to the extent that is in the opinion of the central board appropriate to do so having regard to the objects and functions of the bank(3) the accounts of the bank shall be audited annually by the government auditor15(4) the audit by the government auditor shall not include an audit of performance of the bank(5) the government auditor, shall,—(a) certify the accounts of the bank; and (b) make an audit report20(6) the government auditor shall be provided at all reasonable times access to the books, accounts and other documents of the bank, and may, at the expense of the bank, employ accountants or other persons to assist him in investigating such accounts, and may, in relation to such accounts, examine any director or officer of the bank25(7) the certified accounts and the audit report must be placed before the audit committee and the central board, which must record its observations on the audit report(8) in relation to the audit of the accounts of the bank, the government auditor shall not audit—30(a) the deliberations, decisions or minutes of the monetary policy committeeconstituted under this act and the actions of the bank in relation to implementing monetary policy decisions;35(b) the transactions by the bank to provide any kind of short term, temporaryand emergency liquidity system in order to maintain the stability of the economy and credit system of india;(c) any part of a discussion or communication between directors of the central board, directors of the monetary policy committee, and officers and employees of the reserve bank mentioned under clauses (a) and (b)40(9) the bank shall preserve such audit records for such period of time and in such manner as may be prescribedexplanation—for the purposes of this section, "government auditor" means the comptroller and auditor-general of india, or any other person appointed by the comptroller and auditor-general of india in this regard"12 sections 50, 51, 52 and 53 of the principal act shall be omittedomission of sections 50, 51, 52 and 53amendment of section 5813 in section 58 of the principal act, after sub-section (1), the following section shall be inserted, namely:—5"(1a) the central board shall approve each and every regulation proposed to be made by the bank on the basis of an analysis of costs and benefits with respect to the regulations proposed, carried out by the bank, among other things"14 after the fifth schedule to the principal act, the following schedules shall be inserted, namely:—insertion of sixth and seventh schedules"sixth scheduleselection committee(see section 10a)10(1) constitution of selection committee:—(a) the central government shall maintain a list of at least ten independent experts from the fields of finance, law, and economics who are available to serve as experts on the selection committee15explanation—for the purposes of item (a), "independent" means independent of the central government, state government and the bank(b) the selection committee shall comprise,—(i) a chairperson of the selection committee;(ii) three independent experts; and20(iii) a variable director as defined in item (e) of this paragraph(c) the chairperson shall be a nominee of the central government(d) the chairperson of the selection committee shall select the three independent experts from the list maintained under item (a)(e) the variable director shall be,—25(i) a nominee of the central government for the selection of governor ofthe bank;(ii) the governor for selection of all other directors of the bank(f) the central government shall provide the selection committee with adequate resources to advertise the vacancies in the office for which selection is made and carry out the selection in an efficient manner30(2) procedure to be followed by the selection committee:—(a) the selection committee shall make a document stating the procedure it shall follow for selecting from candidates(b) the procedure shall be fair, transparent and efficient35(c) the selection committee shall advertise the vacancy and the procedure forselecting from candidates to attract the attention of suitable candidates(d) the selection committee may consider candidates who have not applied after recording reasons for considering such candidates(e) the selection committee may nominate up to two candidates for every vacancy for which it has been constituted40(f) the selection committee shall complete its selection procedure within one hundred days of being constituted which may be extend by twenty more days with permission of the central government seventh  schedule procedure  for  meetings  of  central  board (see section 13)5(1) the central board shall meet as frequently and at such place as may be stipulated in the regulations(2) the governor of the bank shall chair meetings of the central board and if governor is not present, the person who has served as director for the longest period of time shall chair the meeting, unless otherwise stipulated in the regulations10(3) if two or more directors of the central board request a meeting in writing, the governor shall convene a meeting of the central board within thirty days of such request, failing which the directors seeking the meeting may convene the meeting without the governor after the lapse of the thirty day period(4) subject to at least one physical meeting in a year, the directors may attend meetings of the central board by suitable technological means without being physically present15(5) the quorum for a meeting of the board shall be more than half of the total number of directors save the director(s) nominated by the central government(6) each director shall be given at least seven days prior written notice of a meeting (7) in special circumstances, a shorter notice of a meeting may be given, and such circumstances shall be clearly recorded at that meeting20(8) the secretary of the central board will be responsible for keeping the records of every meeting of the central board(9) the records shall be published by the bank within three weeks of each meeting (10) selected portions of records may be published with appropriate delay if, they,—25(a) relate exclusively to the conduct of individuals with regard to the performance of their functions within the bank;(b) relate to information that has been obtained from a person in confidence, where such information is exempt from disclosure by that person under the right to information act, 2005;30(c) involve discussion of a particular instance of violation of laws or censuring any person;(d) disclose information about a particular investigation which is ongoing; (e) disclose techniques for investigation or inspection; (f) disclose information of a commercial nature relating to a financial service provider which has been obtained for regulatory purposes; or(g) deprive a person of a right to a fair and impartial adjudication35(11) the selected portions of records mentioned in item (9) shall not be published if, they,—(a) are likely to lead to systemic risk;40(b) are likely to significantly frustrate implementation of an action proposed by the or bank or the central board, where such action has not been disclosed to the public; or(c) involve discussion of any particular legal proceeding before a tribunal, court or arbitrator(12) the publication of portions of records relating to a particular meeting may be delayed or prevented only if the central board, in such meeting,—(a) records the reason in respect of such portions of the records; (b) the majority of directors present at the meeting vote in favour of such actionfor each portion of the records separately; and5(c) the vote of each director is recorded and published in accordance withitem (9)(13) the portions of records delayed for publication must be published by the bank within six months, or as soon as the reasons for their delay cease to be applicable, whichever is later10(14) in this schedule, "records" mean the agenda, proposals, and decisions taken at the meeting, and includes the votes of each directors present at the meeting" statement of objects and reasonsthe reserve bank of india (rbi) is one of the principal institutions of financial and economic governance with a well-defined sphere of activity, distinct and differentiated from other areas in india it is primarily responsible for monetary stability, regulation of banking operations, management of foreign exchange reserves and issuing of currencyhowever, lately questions have been raised over the role and functioning of the rbi's central board which is the governing authority of the bank the public accounts committee too has questioned the governor of rbi about the role of the central board further, in terms of transparency and accountability it lags behind its international counterparts like the federal reserve and bank of england this indicates that there is a need to change the way it functionshowever, the central board as an institution is bound by the provisions of the reserve bank of india act, 1934 it cannot change its behaviour on its own therefore, in order to transform the working of the central board and rbi as whole for better, the need is to amend the parent actthe bill therefore, seeks to amend the reserve bank of india act, 1934 with a view to make the functioning and working of the central board and rbi as a whole more efficient, transparent, accountable to the parliament and general public without affecting its autonomous and independent characterhence this billnew delhi;konda vishweshwar reddyjuly 5, 2017 financial memorandumclause 6 of the bill provides for the constitution of a selection committee for short listing of persons to be appointed as a director by the central government clause 8 provides for constitution of an inquiry committee to inquire into the grounds for removal of a director appointed under this act clause 11 of the bill provides for establishment of an audit committee by the central board to review the functioning of the bank it also provides that the bank shall maintain a website or any other universally accessible repository of electronic information the bill, therefore, if enacted would involve expenditure from the consolidated fund of india it is estimated that a sum of about rupees one crore would involve as recurring expenditure per annum from the consolidated fund of indiaa non-recurring expenditure of about rupees two lakhs is also likely to be involved out of the consolidated fund of india memorandum  regarding  delegated  legislationclause 3 of the bill empowers the central board may, by notification in the official gazette, make regulations delegating the functions of the board to the governor or any other director or employee of the bank clause 10 empowers the central board to make regulations regarding the proceedings of its meetings clause 11 empowers the central board to make regulations stipulating the process to be followed by it for evaluating the performance of its directors, including the requirement of a director to recuse him from deliberations or decisions involving an evaluation of his performance it also empowers the reserve bank of india to make regulations regarding publication of information which it is obliged to publish under this act as the regulations will relate to matters of detail only, the delegation of legislative power is of a normal character annexure extract from the reserve bank of india act, 1934 (2 of 1934)   definition2 (aii) "the bank" means the reserve bank of india constituted by this act;(aiii) "bank for international settlements" means the body corporate established with the said name under the law of switzerland in pursuance of an agreement dated the 20th january, 1930, signed at the hague;   management7 (1)   (2)   (3) save as otherwise provided in regulations made by the central board, the governor and in his absence the deputy governor nominated by him in this behalf, shall also have powers of general superintendence and direction of the affairs and the business of the bank, and may exercise all powers and do all acts and things which may be exercised or done by the bank   8 (1) the central board shall consist of the following directors, namely:—(a) a governor and not more than four deputy governors to be appointed by the central government;composition of the central board, and term of office of directors(b) four directors to be nominated by the central government, one from each of the four local boards as constituted by section 9;(c) ten directors to be nominated by the central government; and(d) two government officials to be nominated by the central government;(2)   (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: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(4) the governor and a deputy governor shall hold office for such term not exceeding five years as the central government may fix when appointing them, and shall be eligible for re-appointmenta director nominated under clause (c) of sub-section (1) shall  hold office for a period of four years and 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 intermittentlya director nominated under clause (d) of sub-section (1) shall hold office during the pleasure of the central government   10 (1) no person may be a director or a member of a local board who—  disqualifications of directors and members of local boards(e) is a director of a banking company within the meaning of clause (c) of section 5 of the 6 [banking regulation act, 1949], or of a co-operative bank   (2)   (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   11 (1)   removal from and vacation of office(2) a director nominated under clause (b) or clause (c) of sub-section (1) of section 8shall cease to hold office if without leave from the central board he absents himself from three consecutive meetings of the board convened under sub-section (1) of section 13(3)   (4)   (5) the nomination as director or member of a local board of any person who is a member of parliament or the legislature of any state shall be void, unless, within two months of the date of his nomination, he ceases to be such member, and, if any director or member of a local board is elected or nominated as a member of parliament or any such legislature, he shall cease to be a director or member of the local board as from the date of such election or nomination, as the case may be   casual vacancies and absences12 (1) if the governor or a deputy governor by infirmity or otherwise is rendered incapable of executing his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment, the central government may, after consideration of the recommendations made by the central board in this behalf, appoint another person to officiate for him, and such person may, notwithstanding anything contained in clause (d) of sub-section (1) of section 10, be an officer of the bank(2)   (3)   (4) where any casual vacancy occurs in the office of a director other than the vacancies provided for in sub-section (1), the vacancy shall be filled by the central government   13 (1) meetings of the central board shall be convened by the governor at least six times in each year and at least once in each quartermeetings of the central board(2) any four directors may require the governor to convene a meeting of the central board at any time and the governor shall forthwith convene a meeting accordingly(3) the governor, or if for any reason, he is unable to attend, the deputy governor authorized by the governor under the proviso to sub-section (2) of section 8 to vote for him, shall preside at meetings of the central board, and, in the event of an equality of votes, shall have a second or casting vote   auditors50 (1) not less than two auditors shall be appointed, and their remuneration fixed, by the central government(2) the auditors shall hold office for such term not exceeding one year as the central government may fix while appointing them, and shall be eligible for reappointment51 without prejudice to anything contained in section 50, the central government may at any time appoint the comptroller and auditor-general to examine and report upon the accounts of the bankappointment of special auditors by government powers and duties of auditors52 (1) every auditor shall be supplied with a copy of the annual balance-sheet, and it shall be his duty to examine the same, together with the accounts and vouchers, relating thereto; and every auditor shall have a list delivered to him of all books kept by the bank, and shall at all reasonable times have access to the books, accounts and other documents of the bank, and may, at the expense of the bank, 6 employ accountants or other persons to assist him in investigating such accounts, and may, in relation to such accounts, examine any director or officer of the bank(2) the auditors shall make a report to the central government upon the annual balancesheet and accounts, and in every such report they shall state whether, in their opinion, the balance-sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the state of the bank's affairs, and, in case they have called for any explanation or information from the central board, whether it has been given and whether it is satisfactoryreturns53 (1) the bank shall prepare and transmit to the central government a weekly account of the issue department and of the banking department in such form as the central government may, by notification in the gazette of india, prescribe the central government shall cause these accounts to be published in the gazette of india at such intervals and in such modified form as it may deem fit(2) the bank shall also, within two months from the date on which the annual accounts of the bank are closed, transmit to the central government a copy of the annual accounts signed by the governor, the deputy governors and the chief accounting officer of the bank, and certified by the auditors, together with a report by the central board on the working of the bank throughout the year, and the central government shall cause such accounts and report to be published in the gazette of india   power of the central board of make regulations58 (1) the central board may, with the previous sanction of the central government by notification in the official gazette make regulations consistent with this act to provide for all matters for which provision is necessary or convenient for the purpose of giving effect to the provisions of this act ———— a billfurther to amend the reserve bank of india act, 1934————gmgipmrnd—2242ls(s3)—17112017