UPSC Prelims 2021 · Question 1 of 97
UPSC Prelims 2021 question on RBI Act Governor Appointment
- ExamUPSC CSE
- Year2021
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeStatement
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?
Show answer
Answer: C. 1 and 3 only
Verdict
Correct statements: 1 and 3 → Option (c).
Statement by statement
Statement 1 — CORRECT: As per Section 8 of the RBI Act, 1934, the Governor and not more than four Deputy Governors are appointed by the Central Government.
Statement 2 — INCORRECT: There is no such provision in the Constitution of India. The power of the Central Government to issue directions to the RBI flows from Section 7 of the RBI Act, 1934, not the Constitution.
Statement 3 — CORRECT: As per Section 7 of the RBI Act, 1934, the Governor (and in his absence the nominated Deputy Governor) has powers of general superintendence and direction of the affairs and business of the Bank.