Appointment and Powers of RBI Governor
Question
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.
Options
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Explanation
Statement 1 is correct because the RBI Governor is appointed by the Central Government's Appointments Committee of the Cabinet. Statement 2 is incorrect because the power to issue directions in public interest is granted under Section 7 of the RBI Act, 1934, not by any provisions in the Constitution of India. Statement 3 is correct because the RBI Governor derives executive powers from Section 7(3) of the RBI Act, 1934. > The Reserve Bank of India is a statutory body governed by the RBI Act, 1934, and is not a constitutional body. Answer: (c).
Question details
Year
2021
Paper
GS Paper 1
Question
Q1
Subject
Economy
Sub-topic
Banking & RBI
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
RBI Act, 1934 / Indian Constitution
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