National Bank for Agriculture and Rural Development Act, 1981
7. Term of office of Chairman and other directors, retirement and payment of fees.-
1. The Chairman shall hold office for such term not exceeding five years and shall receive such salary and allowances as the Central Government may, at the time of appointment, specify and shall be eligible for re-appointment:
1A. Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the terms of office of the Chairman at any time before the expiry of the term specified under that sub-section by giving him a notice of not less than three months in writing or three months, salary and allowances in lieu of such notice.
1B. In the case of a vacancy in the office of the Chairman, the Managing Director shall perform the functions and duties of the Chairman during such vacancy.
2. Subject to the provisions contained in sub-section (5), a director appointed under clause (b) or clause (c) of sub-section (1) of section 6, shall hold office for such term, not exceeding three years as the Central Government may specify in this behalf and shall be eligible for reappointment:
Provided that no such director shall hold office continuously for a period exceeding six years.
3. The Central Government may, in consultation with the Reserve Bank, remove the Chairman at any time before the expiry of his term of office after giving him a reasonable opportunity of showing cause against the proposed removal.
4. The Chairman and the directors referred to in sub-section (2) shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any of its committees and for attending to any other work of the National Bank:
5. The directors appointed under clauses (b) to (f) of sub- section (1) of section 6 shall hold office during the pleasure of the Central Government.