First star bank is an example of an organization with a centralized authority.
Centralized authority in an organization occurs when there's a centralized source who makes all or most of the decisions in the organization.
Centralized authority typically comes from the top. In such a case, most of the decisions would be taken by the person.
Based on the question asked, since Indra needs to get approval from the vice president, then a centralized authority exists in the bank.
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