Question
For what maximum term can the Governor and a Deputy
Governor of the RBI hold office under Section 8(4) of the RBI Act, 1934?Solution
Section 8(4) provides that the Governor and a Deputy Governor shall hold office for such term not exceeding five years as the Central Government may fix when appointing them, and they shall be eligible for re-appointment. This is distinct from a Director nominated under clause (c), who holds office for four years. The five-year ceiling along with eligibility for re-appointment is the correct statutory position for the Governor and Deputy Governors.
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