Consider the following statements 1 The Governor of the Reserve Bank of India RBI is appointed by th...........

Economic Affairs Types of Banks and Banking

Consider the following statements :

1.The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.

2.Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.

3.The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

This questions was previously asked in

UPSC CSP Previous Year Paper (2021)

Only One

Only Two

All Three

None

1, 2 and 3

The Governor of the Reserve Bank of India (RBI) is indeed appointed by the Central Government.

Section 7 of the RBI Act, 1934 allows the Central Government to give directions to the RBI if they believe it is necessary in public interest.

The powers and functions of the Governor of the RBI are derived from the RBI Act, 1934.

Submit Error

The provision is under RBI Act and not in the constitution. Hence statement 2 is incorrect.