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Home › Indian Laws › Banking Regulation Act, 1949 › Section 10A
Banking Regulation Act, 1949 · Section guide

Section 10A: Board of directors to include persons with professional or other experience

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 10A — Board of directors to include persons with professional or other experience. Requires a prescribed proportion of the Board to have professional. Or specialised experience relevant to banking and the economy; RBI can require reconstitution after giving the statutory opportunity and can act if the bank. Does not comply; director-tenure rules include the 2025 ten-year co-operative-bank limb.

Official statute linkedProvision-specific anatomyPractical case + evidence file2025 amendment mapped
Official text: DFS consolidated Act · Banking Laws (Amendment) Act, 2025
Effective-date control — 1 August 2025. Ten-year continuous-director limb added for co-operative banks. For an event that straddles this date, the working paper should show the pre/post amendment position rather than treating the current wording as historically universal.

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Requires a prescribed proportion of the Board to have professional or specialised experience relevant to banking and the economy.

Condition / limitation

RBI can require reconstitution after giving the statutory opportunity and can act if the bank does not comply.

Timing / amount / process

Condition / limitationdirector-tenure rules include the 2025 ten-year co-operative-bank limb.

Professional application

board composition proportions, qualifying experience, disqualifications, tenure and the 2025 cooperative change with entity scope.

Evidence / working-paper checklist

  • Section 10A evidence: board and committee composition register.
  • Section 10A evidence: fit-and-proper / experience / conflict declarations.
  • Section 10A evidence: appointment, removal or RBI approval correspondence.
  • Section 10A evidence: minutes recording abstention, approval and effective dates.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

  • For Section 10A, avoid counting titles instead of checking statutory experience/independence conditions.
  • For Section 10A, avoid implementing an appointment before a required RBI approval takes effect.
  • For Section 10A, avoid failing to record conflicts, abstentions or tenure calculations.

Linked Rules, RBI directions, notifications and forms

Linked instruments keep their own legal basis; they are not attributed to Section 10A unless the official instrument says so.

Related sections inside the Act

Section 10B — Banking company to be managed by whole-time chairmanSection 10BB — Power of Reserve Bank to appoint Chairman / managing directorSection 10C — Chairman and certain directors not required to hold qualification sharesSection 10D — Sections 10A and 10B to override other laws, contracts, etc.Section 16 — Prohibition of common directorsSection 9 — Disposal of non-banking assets

Use these links to read Section 10A in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.

Current-law source control

Source control: read Section 10A in the DFS/India Code text together with the mapped 2025 amending Act and commencement date.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 10A on the event date.

Disclaimer

This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.