Section 31:
Meetings of the Central Board.
1[(1) The Central Board shall meet at such time and place and
shall observe such rules of procedure in regard to the transaction of business at its meetings as may be
prescribed; and the meeting of the Central Board may be held by participation of the directors of the
Central Board through videoconferencing or such other electronic means, as may be prescribed, which are
capable of recording and recognising the participation of the directors and the proceedings of such
meetings are capable of being recorded and stored:
Provided that the Central Government may in consultation with the Reserve Bank, by notification in
the Official Gazette, specify the matters which shall not be discussed in a meeting of the Central Board
held through videoconferencing or such other electronic means.
(2) All questions at the meeting shall be decided by a majority of the votes of the directors present in
the meeting or through videoconferencing or such other electronic means and in the case of equality of
votes the chairman or, in his absence, the managing director authorised by the chairman shall have a
second or casting vote.]
(3) A director who is directly or indirectly concerned or interested in any contract, loan, arrangement
or proposal entered into or proposed to be entered into by or on behalf of the State Bank shall at the
earliest possible opportunity disclose the nature of his interest to the Central Board and shall not be
present at any meeting of the Central Board when any such contract, loan, arrangement or proposal is
discussed unless his presence is required by the other directors for the purpose of eliciting information,
and no director so required to be present shall vote on any such contract, loan, arrangement or proposal.
2[Provided that nothing contained in this sub-section shall apply to such director by reason only of his
being--
(i) a shareholder (other than a director) holding not more than two per cent. of the paid-up capital
in any public company as defined in the Companies Act, 1956 (1 of 1956) or any corporation
established by or under any law for the time being in force in India or any co-operative society with
which or to which the State Bank has entered into or made, or proposes to enter into or make, a
contract, loan, arrangement or proposal; or
(ii) a director ex officio of the State Bank 3***, 4[or]]
5[(iii) an officer or other employee of the State Bank, if he is a director appointed under
clause(ca) or clause (cb)
6*** of section 19.]
(4) If for any reason neither the chairman nor the vice-chairman is able to be present at a meeting of
the Central Board, any director, 7***authorised by the chairman in writing in this behalf, and in the
absence of such authorisation,8[any director] elected by the directors present from amongst themselves,
shall preside at the meeting and, in the event of equality of votes, shall have a second or casting vote.
Notes:
1. Subs. by Act 27 of 2010, s. 23, for sub-section (1) and (2) (w.e.f. 15-9-2010).
2. Ins. by Act 56 of 1962, s. 2 (w.e.f. 1-1-1963).
3. The words “or a director of a subsidiary bank” omitted by Act 19 of 2018, s. 5 (w.e.f. 1-4-2017).
4. Added by Act 48 of 1973, s. 10 (w.e.f. 1-7-1974).
5. Ins. by s. 10, ibid. (w.e.f. 26-6-1976).
6. The words, brackets and figure “of sub-section (1)” omitted by Act 3 of 1994, s. 16 (w.e.f. 15-10-1993).
7. The words “, other than a managing director” omitted by Act 48 of 1973, s. 10 (w.e.f. 1-7-1974).
8. Subs. by s. 10, ibid., for “any such director” (w.e.f. 1-7-1974).