Section 10B(6) in The Banking Regulation Act, 1949
(6)Without prejudice to the provisions of section 36-AA, where the Reserve Bank is of opinion that any person who is, or has been elected to be, the [[chairman of the Board of directors who is appointed on a whole-time basis or the managing director] [Substituted by Act 20 of 1994, Section 2, for certain words (w.e.f. 31.1.1994).] of a banking company is not a fit and proper person to hold such office, it may, after giving to such person and to the banking company a reasonable opportunity of being heard, by order in writing, require the banking company to elect or appoint any other person as the [chairman of the Board of directors who is appointed on a whole-time basis or the managing director] [Substituted by Act 20 of 1994, Section 2, for certain words (w.e.f. 31.1.1994).] and if, within a period of two months from the date of receipt of such order, the banking company fails to elect or appoint a suitable person as the [chairman of the Board of directors who is appointed on a whole-time basis or the managing director] [Substituted by Act 20 of 1994, Section 2, for certain words (w.e.f. 31.1.1994).], the Reserve Bank may, by order, remove the first-mentioned person from the office of the [chairman of the Board of directors who is appointed on a whole-time basis or the managing director] [Substituted by Act 20 of 1994, Section 2, for certain words (w.e.f. 31.1.1994).] of the banking company and appoint a suitable person in his place whereupon the person so appointed shall be deemed to have been duly elected or appointed, as the case may be, as the [chairman of the Board of directors who is appointed on a whole-time basis or the managing director] [Substituted by Act 20 of 1994, for certain words (w.e.f. 31.1.1994).] of such banking company and any person elected or [appointed as chairmen on a whole-time basis or managing director] [Substituted by Act 20 of 1994, Section 2, for certain words (w.e.f. 31.1.1994).] under this sub-section shall hold office for the residue of the period of office of the person in whose place he has been so elected or appointed.
