Q. 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?
Why this question) Recently, deputy governor of Reserve Bank of India (RBI) warned against government interference in Reserve Bank’s working.
Exp) Option c is correct.
Statement 1 is correct.
Section 8(1)(a) of the Reserve Bank of India Act, 1934, provides that there shall be one Governor and not more than four Deputy Governors to be appointed by the central government on the central board of RBI.
Statement 2 is incorrect.
Section 7 of the RBI Act provides that Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest. Constitution of India does not provide any provision for Central Government the right to issue directions to the RBI in Public interest.
Statement 3 is correct.
According to RBI Act, the Governor shall have powers of general superintendence and direction of the affairs and the business of the RBI. He/she may exercise all powers and do all acts and things which may be exercised or done by the RBI.