Chapter II — Incorporation, Capital, Management and Business

Section 11: Removal from and vacation of office

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 11 deals with removal, vacation of office, disqualification events, legislative-membership conflicts and resignation of RBI Directors/Local Board members.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 11 in 2 minutes

Legal effectSection 11 deals with removal, vacation of office, disqualification events, legislative-membership conflicts and resignation of RBI Directors/Local Board members.

Operative ruleIt allows Central Government removal, provides consequences for specified meeting absences, mandates removal when Section 10 disqualifications arise and regulates the effect of becoming a member of Parliament or a State Legislature.

Connected lawThe section links directly to Sections 8, 10 and 13; the reason for vacation/removal affects eligibility and the process to be documented.

File evidenceFor governance records, preserve attendance, leave, disqualification facts, resignation acceptance and the effective date on which the office became vacant.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Scope

Section 11 deals with removal, vacation of office, disqualification events, legislative-membership conflicts and resignation of RBI Directors/Local Board members.

Operative limb

It allows Central Government removal, provides consequences for specified meeting absences, mandates removal when Section 10 disqualifications arise and regulates the effect of becoming a member of Parliament or a State Legislature.

Legal boundary

The section links directly to Sections 8, 10 and 13; the reason for vacation/removal affects eligibility and the process to be documented.

Worked practical example

Facts. If a Director misses three consecutive qualifying Central Board meetings without leave, the analysis should use the statutory absence rule rather than a generic HR attendance policy.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 11 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. The section links directly to Sections 8, 10 and 13; the reason for vacation/removal affects eligibility and the process to be documented.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 11 has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 11?

Removal from and vacation of office: Section 11 deals with removal, vacation of office, disqualification events, legislative-membership conflicts and resignation of RBI Directors/Local Board members.

Which statutory limb should be checked first?

Scope - Section 11 deals with removal, vacation of office, disqualification events, legislative-membership conflicts and resignation of RBI Directors/Local Board members.

What is the next legal boundary?

Operative limb - It allows Central Government removal, provides consequences for specified meeting absences, mandates removal when Section 10 disqualifications arise and regulates the effect of becoming a member of Parliament or a State Legislature.

What record should support the conclusion?

Section 11 file evidence: For governance records, preserve attendance, leave, disqualification facts, resignation acceptance and the effective date on which the office became vacant.

Primary sources

Source control for Section 11: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.