Chapter II — Incorporation, Capital, Management and Business

Section 9: Local Boards, their constitution and functions

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 9 provides for Local Boards for the four areas in the First Schedule and states their advisory/delegated role.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 9 in 2 minutes

Legal effectSection 9 provides for Local Boards for the four areas in the First Schedule and states their advisory/delegated role.

Operative ruleEach Local Board consists of five members appointed by the Central Government, elects its chairman, has a four-year tenure framework and advises the Central Board or performs delegated duties.

Connected lawThe First Schedule matters because it identifies the areas to which the Local Boards correspond; the Local Boards do not independently possess every power of the Central Board.

File evidenceFor governance work, identify the matter actually referred or delegated to the Local Board rather than assuming general decision-making authority.

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 9 provides for Local Boards for the four areas in the First Schedule and states their advisory/delegated role.

Operative limb

Each Local Board consists of five members appointed by the Central Government, elects its chairman, has a four-year tenure framework and advises the Central Board or performs delegated duties.

Legal boundary

The First Schedule matters because it identifies the areas to which the Local Boards correspond; the Local Boards do not independently possess every power of the Central Board.

Worked practical example

Facts. A regional matter considered by a Local Board should be traced to the Central Board reference/delegation and the applicable area under the First Schedule.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 9 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. The First Schedule matters because it identifies the areas to which the Local Boards correspond; the Local Boards do not independently possess every power of the Central Board.
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

Reserve Bank of India General Regulations, 1949Delegated regulations under the RBI Act governing institutional and operational matters.

Questions and answers

What is the purpose of Section 9?

Local Boards, their constitution and functions: Section 9 provides for Local Boards for the four areas in the First Schedule and states their advisory/delegated role.

Which statutory limb should be checked first?

Scope - Section 9 provides for Local Boards for the four areas in the First Schedule and states their advisory/delegated role.

What is the next legal boundary?

Operative limb - Each Local Board consists of five members appointed by the Central Government, elects its chairman, has a four-year tenure framework and advises the Central Board or performs delegated duties.

What record should support the conclusion?

Section 9 file evidence: For governance work, identify the matter actually referred or delegated to the Local Board rather than assuming general decision-making authority.

Primary sources

Source control for Section 9: 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.