Skip to main content
Home › Indian Laws › Banking Regulation Act, 1949 › Section 10C
Banking Regulation Act, 1949 · Section guide

Section 10C: Chairman and certain directors not required to hold qualification shares

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 10C — Chairman and certain directors not required to hold qualification shares. Removes any qualification-share requirement for the chairman and specified directors covered. By the section; a company cannot insist on such shares where the statutory exemption applies.

Official statute linkedProvision-specific anatomyPractical case + evidence file
Official text: DFS consolidated Act

Statutory structure and provision map

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

Core statutory rule

Removes any qualification-share requirement for the chairman and specified directors covered by the section.

Condition / limitation

a company cannot insist on such shares where the statutory exemption applies.

Source and effective-date control

Apply the wording of Section 10C that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Explain precisely whose qualification-share requirement is waived and under which appointment provisions.

Evidence / working-paper checklist

  • Section 10C evidence: board and committee composition register.
  • Section 10C evidence: fit-and-proper / experience / conflict declarations.
  • Section 10C evidence: appointment, removal or RBI approval correspondence.
  • Section 10C 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 10C, avoid counting titles instead of checking statutory experience/independence conditions.
  • For Section 10C, avoid implementing an appointment before a required RBI approval takes effect.
  • For Section 10C, avoid failing to record conflicts, abstentions or tenure calculations.

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 10D — Sections 10A and 10B to override other laws, contracts, etc.Section 11 — Requirement as to minimum paid-up capital and reserves

Use these links to read Section 10C 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: Section 10C is anchored to the official DFS consolidated text; later changes require separate Gazette verification.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 10C 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.