law: Banking Regulation Act, 1949
  10. Prohibition of employment of Managing
  
  Agents and restrictions on certain forms of employment
  (1) No banking company-
  (a) shall employ or be
  
  managed by a Managing Agent; or
  (b) shall employ or
  
  continue the employment of any person-
  (i) who is, or at any
  
  time has been, adjudicated insolvent, or has suspended payment or has
  
  compounded, with his creditors, or who, is or has been, convicted by a criminal
  
  court of an offence involving moral turpitude; or
  (ii) whose
  
  remuneration or part of whose remuneration takes the form of commission or of a
  
  share in the profits of the company:
  PROVIDED that nothing contained
  
  in this sub-clause shall apply to the payment by a banking company of-
  (a) any bonus in
  
  pursuance of a settlement or award arrived at or made under any law relating to
  
  industrial disputes or in accordance with any scheme framed by such banking
  
  company or in accordance with the usual practice prevailing in banking
  
  business;
  (b) any commission to
  
  any broker (including guarantee broker), cashier-contractor, clearing and
  
  forwarding agent, auctioneer or any other person, employed by the banking
  
  company under a contract otherwise than as a regular member of the staff of the
  
  company; or]
  (iii) whose
  
  remuneration is, in the opinion of the Reserve Bank, excessive; or
  (c) shall
  
  be managed by any person-
  (i) who is
  
  a Director of any other company not being-
  (a) a
  
  subsidiary of the banking company, or
  (b) a company registered
  
  under section 25 of the Companies Act, 1956 (1 of 1956):
  PROVIDED that the prohibition in this
  
  sub-clause shall not apply in respect of any such Director for a temporary
  
  period not exceeding three months or such further period not exceeding nine
  
  months as the Reserve Bank may allow; or]
  (ii) who is engaged in any other business or
  
  vocation; or
  (iii) 9[whose term of office as a person
  
  managing the company is] for a period exceeding five years at any one time:
  PROVIDED that the term of office of any such
  
  person may be renewed or extended by further periods not exceeding five years
  
  on each occasion subject to the condition that such renewal or extension shall
  
  not be sanctioned earlier than two years form the date on which it is to come
  
  into force:
  PROVIDED ALSO that where the term of
  
  office of such person is for an indefinite period, such term, unless it
  
  otherwise comes to an end earlier, shall come to an end immediately on the
  
  expiry of five years from the date of his appointment or on the expiry of three
  
  months from the date of commencement of section 8 of the Banking Laws
  
  (Miscellaneous Provisions) Act, 1963 (55 of 1963), whichever is later:]
  PROVIDED FURTHER that nothing in this
  
  clause shall apply to a Director, other than the Managing Director, of a
  
  banking company by reason only of his being such Director.
  Explanation : For the purpose of
  
  sub-clause (iii) of clause (b), the expression "remuneration ", in
  
  relation to a persons employed or continued in employment, shall include salary,
  
  fees and perquisites but shall not include any allowances or other amounts paid
  
  to him for the purpose of reimbursing him in respect of the expenses actually
  
  incurred by him in the performance of his duties.
  (2) In forming its opinion under sub-clause
  
  (iii) of clause (b) of sub-section (1), the Reserve Bank may have regard among
  
  other matters to the following:-
  (i) the financial
  
  condition and history of the banking company, its size and area of operation,
  
  its resources, the volume of its business, and the trend of its earning
  
  capacity;
  (ii) the number of its
  
  branches or offices;
  (iii) the
  
  qualifications, age and experience of the person concerned;
  (iv) the remuneration
  
  paid to other persons employed by the banking company or to any person
  
  occupying a similar position in any other banking company similarly situated;
  
  and
  (v) the interests of
  
  its depositors.
  (3)[***]
  (4)[***]
  (5)[***]
  (6) Any decision or order of the Reserve Bank
  
  made under this section shall be final for all purposes.]