law: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  
  7.Head office and management.- 
  (1) The Head Office of each corresponding new bank shall be at
  
  such place as the Central Government may, by notification in the Official
  
  Gazette, specify in this behalf, and, until and such place is so specified,
  
  shall be at such place at which the head office of existing bank, in relation
  
  to which it is the corresponding new bank, is one the commencement of this Act,
  
  located.
  (2) The general superintendence, direction and management of the
  
  affairs and business of a corresponding new bank shall vest in a Board of
  
  Directors which shall be entitled to exercise all such powers and do all such
  
  acts and things as the corresponding new bank is authorized to exercise and do.
  (3) (a) As soon as may be after the appointed day, the Central
  
  Government shall, in consultation with the Reserve Bank, constitute the first
  
  Board of Directors of a corresponding new bank, consisting of not more than
  
  seven persons, to be appointed by the Central Government, and every director so
  
  appointed shall hold office until the Board of Directors of such corresponding
  
  new bank is constituted in accordance with the scheme made under section 9: 
  Provided that the Central Government may, if it is of
  
  opinion that it is necessary in the interests of he corresponding new bank so
  
  to do, remove a person from the membership of the first Board of Directors and
  
  appoint any other person in his place.
  (b) Every Member of the first Board of
  
  Directors (not being an officer of the Central Government or of the Reserve
  
  Bank) shall receive such remuneration as is equal to the remuneration which a
  
  member of the Board of Directors of the existing bank was entitled to receive
  
  immediately before the commencement of this Act.
  (4) Until the first Board of Directors is appointed by the
  
  Central Government under sub-section (3), the general superintendence, direction
  
  and management of the affairs and business of a corresponding new bank shall
  
  vest in a Custodian, who shall be the chief executive officer of that bank and
  
  may exercise all powers and do all acts and things as may be exercised or done
  
  by that bank.
  (5) The Chairman of an existing bank holding office as such
  
  immediately before the commencement of this Act, shall be the Custodian of the
  
  corresponding new bank and shall receive the same emoluments as he was
  
  receiving immediately before such commencement:
  Provided that the Central Government may, if the
  
  Chairman of an existing bank declines to become, or to continue to functions
  
  as, a Custodian of the corresponding new bank, or, if it is of opinion that it
  
  is necessary in the interests of the corresponding new bank so to do, appoint
  
  any other person as the Custodian of a corresponding new bank so to do, appoint
  
  any other person as the Custodian of a corresponding new bank so, to do,
  
  appoint any other person as the Custodian of a corresponding new bank and the Custodian
  
  so appointed shall receive such emoluments as the Central Government may
  
  specify in this behalf.
  (6) The Custodian shall hold office during the pleasure of the
  
  Central Government