(1) A person shall be disqualified to be a director of a subsidiary bank, if--
         (a) he holds the office of director, provisional director, promoter, agent, or manager of any banking company or a banking company for the formation of which a prospectus has been issued; or
         (b) he is a salaried officer of Government; or
         (c) he has been removed or dismissed from the service of Government or a local authority or a corporation or a company in which not less than fifty-one per cent. of the paid-up share capital is held by Government; or
         (d) he holds any office of profit under the subsidiary bank ¹ [other than the office of the managing director]; or
         ¹ [(da) in the case of a director appointed under clause (ca) or clause (cb) of sub-section (1) of section 25,--
             (i) he is not serving in the subsidiary bank or has not been serving in it for a continuous period of at least five years; and
             (ii) he is of such age that there is a likelihood of his attaining the age of superannuation during his term of office as a director; or]
         (e) he is, or at any time has been, adjudicated an insolvent or has suspended payment of his debts or has compounded with his creditors; or
         (f) he is of unsound mind and stands so declared by a competent court; or
         (g) he is, or has been, convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or
         (h) in the case of an elected director, he is not registered as a holder of unencumbered shares in the subsidiary bank of a nominal value of at least one thousand rupees:
     Provided that the disqualification mentioned in clause (b) shall not apply to an officer of the Central Government nominated as a director under clause (e) of sub-section (1) of section 25:
     ² [Provided further that in the case of a director appointed under clause (ca) or clause (cb) of sub-section (1) of section 25, the disqualification mentioned in clause (d) shall not operate:
     Provided also that] in the case of a director deemed to have been elected on the first constitution of the Board of Directors, the disqualification mentioned in clause (h) shall not operate for a period of six months from his becoming such director.
     (2) No two persons who are partners of the same firm or are directors of the same private company or one of whom is an agent of the other or holds a power of attorney from a firm of which the other is a partner may be directors of a subsidiary bank at the same time.
     (3) The nomination or election, as a director of any person who is a member of either House of Parliament or the Legislature of a State shall be void unless within two months of the date of nomination or election as such director, he ceases to be a member of Parliament or the Legislature of the State, and if any director is elected or nominated as a member of Parliament or the Legislature of a State, he shall cease to be a director as from the date of such election or nomination, as the case may be.
     (4) Nothing contained in clause (d) of sub-section (1) shall be deemed to preclude any person from being a director of a subsidiary bank by reason only of his being a legal or technical adviser of that bank.
     (5) In this section,--
         (a) “banking company” has the same meaning as in the ³ [Banking Regulation Act, 1949 (10 of 1949)];
         (b) “manager” means the chief executive officer, by whatever name called, of a banking company;
         (c) “private company” has the same meaning as in the Companies Act, 1956 (1 of 1956).