Section 7 in The Reserve Bank Of India General Regulations, 1949
7. Indemnity of Directors and Members of Local Boards .-(i) Every Director and every member shall be indemnified by the Bank against all losses and expenses incurred by him in or about the discharge of his duties, except such as may happen from his own wilful act or default.
(ii)Neither a Director nor a member shall be responsible for any other Director or member or for any officer or servant of the Bank or for any loss or expense happening to the Bank by the insufficiency or deficiency of value of, or title to, any property or security acquired or taken on behalf of the Bank, or by the insolvency, bankruptcy or wrongful act of any customer or debater of the Bank, or by anything done in the execution of the duties of his officer or in relation thereto, or otherwise than for his own wilful act or default.
