Question

Which of the following is incorrect about the RBI Governor?
1. He is part of the search cum selection committee for members of Monetary Policy Committee (MPC).
2. He heads the MPC.
3. He represents India in WTO conference.
4. He has the casting vote in MPC.

Answer 1

Correct Answer - Option 3 : He represents India in WTO conference.

The correct answer is He represents India in WTO conference.

• Trade and Commerce Minister (Piyush Goyal) represents India at the WTO conference.

 

• The Reserve Bank of India (RBI) is India's central bank, responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.
• It also manages the country's main payment systems and works to promote its economic development.
• Until the Monetary Policy Committee was established in 2016, it also had full control of monetary policy in India.
• It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934.
• Following India's independence on 15 August 1947, the RBI was nationalised on 1 January 1949.
•  A six-member Monetary Policy Committee, headed by RBI Governor, decides the benchmark repo rate.
• RBI Governor is part of the search cum selection committee for members of the Monetary Policy Committee (MPC) and Governor has the casting vote in MPC in case of any clash.
• The main functions of the Reserve Bank of India are as follows:
  • Monetary Authority
  • Regulator and administrator of the financial system
  • Managing Foreign Exchange
  • Issuer of currency
  • Developmental role