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 the 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 1

Correct option is (c) 1 and 3 only

Under section 7 of the RBI Act central government can issue directions to RBI in Public Interest. This was one of the reasons why Urjit Patel resigned from RBI But that Central Government gives that direction using provisions "RBI Act" and not "Constitution".