Chapter II — Incorporation, Capital, Management and Business

Section 16: [Omitted.] First constitution of Local Boards

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 16 on the first constitution of Local Boards is omitted and is purely historical.

Historical / non-operativeOfficial sources mappedProvision-specific decode

Current legal status

Section 16 on the first constitution of Local Boards is omitted and is purely historical.

It addressed the initial transition into the statutory Local Board structure, not continuing appointments.

Use today: Current Local Board constitution is controlled by Section 9 together with appointment/vacancy provisions.

Historical reading note

A historical citation should be explained in context and not presented as a continuing nomination process.

Illustration. For a new Local Board appointment today, Section 9 and the current appointment mechanism are relevant, not omitted Section 16.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 16 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Current Local Board constitution is controlled by Section 9 together with appointment/vacancy provisions.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 16 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 16?

[Omitted.] First constitution of Local Boards: Section 16 on the first constitution of Local Boards is omitted and is purely historical.

Which statutory limb should be checked first?

Scope - Section 16 on the first constitution of Local Boards is omitted and is purely historical.

What is the next legal boundary?

Operative limb - It addressed the initial transition into the statutory Local Board structure, not continuing appointments.

What record should support the conclusion?

Section 16 file evidence: A historical citation should be explained in context and not presented as a continuing nomination process.

Primary sources

Source control for Section 16: 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.