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 statements given above are correct?
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2010
– Statement 2: Certain provisions in the Constitution give the Central Government the right to issue directions to the RBI in public interest. This is incorrect. The relationship between the Central Government and the RBI, including the power of the government to issue directions, is governed by the Reserve Bank of India Act, 1934, specifically Section 7, not the Constitution of India.
– Statement 3: The Governor of the RBI draws his power from the RBI Act. This is correct; the powers, functions, and responsibilities of the RBI Governor are defined and derived from the provisions of the Reserve Bank of India Act, 1934.
– The RBI Governor is the chief executive officer of the central bank and is responsible for its overall direction and supervision.