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.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer:
C
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Explanation:
Statement 1 is correct. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
Statement 2 is incorrect. While the Central Government has powers to issue directions to the RBI, it is not mentioned in the Constitution of India but rather in the Reserve Bank of India Act.
Statement 3 is correct. The Governor of the RBI derives his powers and authority from the Reserve Bank of India Act, which outlines the functions, powers, and responsibilities of the RBI and its Governor.