Section 8 in The Nationalised Banks (Management And Miscellaneous Provisions) Scheme, 1970
8. Term of office and remuneration of a whole-time Director including Managing Director. - (1) A whole-time Director, including the Managing Director shall devote his whole-time to the affairs of the Nationalised Bank and shall hold office for such terms not exceeding five years, as the Central Government may, after consultation with the Reserve Bank, specify and shall be eligible for re-appointment.
[(1-A) Notwithstanding anything contained in sub-clause (1), the Central Government shall have the right to terminate the term of office of a whole-time Director, including the Managing Director, at any time before the expiry of the term specified under that sub-clause by giving to him a notice of not less than three months, in writing or three months' salary and allowances in lieu of notice; and the whole-time Director, including the Managing Director, shall also have the right to relinquish his office at any time before the expiry of the term specified under that sub-clause by giving to the Central Government notice of not less than three months in writing.(1-B) Any reference to a whole-time Director, including the Managing Director, in sub-clause (1-A) shall be construed as including a reference to the person holding office as such at the commencement of the Nationalised Banks (Management and Miscellaneous Provisions) (Second Amendment) Scheme, 1976.](2)A whole-time Director, including the Managing Director shall receive from the Nationalised Bank such salary, allowance, fees and perquisites and be governed by such terms and conditions as the Central Government may determine, after consultation with the Reserve Bank [* * *] [The words " in the case of first appointment and after consultation with the Board in the case of any subsequent appointment" omitted by S.O. 3467, dated 19.11.1973. ].(3)If a whole-time Director including the Managing Director is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his office, the Central Government may, after consultation with the Reserve Bank, appoint another person to act in his place during his absence.(4)The Central Government may, if it is satisfied that it is expedient in the interests of the Nationalised Bank so to do, remove a whole-time Director including the Managing Director from office:Provided that no such removal shall be made except after -(a)consultation with the Board, and(b)giving a reasonable opportunity to the whole-time Director, including the Managing Director, of showing cause against the proposed action.
