Section 9 - Local Boards, their constitution and functions : RBI Act 1934

What is Local Boards, their constitution and functions? Section 9 of Reserve Bank of India Act 1934

Section 9 of RBI Act 1934 : "Local Boards, their constitution and functions"

(1) A Local Board shall be constituted for each of the four areas specified in the First Schedule and shall consist of five members to be appointed by the Central Government to represent, as far as possible, territorial and economic interests and the interest of co-operative and indigenous banks.

(2) The members of the Local Board shall elect from amongst themselves one person to be the Chairman of the Board.

(3) Every member of a Local Board shall hold office for a term of four years and shall be eligible for reappointment :

Provided that any such member shall not be appointed for more than two terms, that is, for a maximum period of eight years either continuously or intermittently.

(4) A Local Board shall advise the Central Board on such matters as may be generally or specifically referred to it and shall perform such duties as the Central Board may delegate to it.