Regional Rural Banks Act, 1976
1. Subject to the provisions of this Act, the general superintendence, direction and management of the affairs and business of a Regional Rural Bank shall vest in a Board of directors who may exercise all the powers and discharge all the functions which may be exercised or discharged by the Regional Rural Bank.
2. In discharging its functions, the Board shall Act on business principles and shall have due regard to public interest.
i. The Board of directors shall consist of the Chairman appointed under sub-section (1) of section 11, and the following other members, namely:--
a. Not more than three directors, to be nominated by the Central Government;
b. Not more than two directors, to be nominated by the concerned State Government; and
c. Not more than three directors, to be nominated by the Sponsor Bank.
ii. The Central Government may increase the number of members of the Board; so, however, that the number of directors does not exceed fifteen in the aggregate and also prescribe the manner in which the additional number may be filled in.