Economy2021
Consider the following statements:
- The Governor of the Reserve bank of India (RBI) is
- Certain provisions in the Constitution of India give the
- The Governor of the RBI draws his power from the RBI
Act. Which of the above statements are correct?
Explanation
The correct option is 1 and 3 only because the Governor of the Reserve Bank of India (RBI) is indeed appointed by the Central Government, as outlined in the RBI Act, which is the legislation that governs the functioning of the RBI and empowers the Governor with necessary authorities. However, statement 2 is inaccurate since, while the Central Government can issue directions to the RBI in certain areas, such provisions do not stem directly from the Constitution but rather from the RBI Act itself. This distinction is crucial for understanding the autonomy of the RBI and its relationship with the government, a significant theme in economic governance and policy-making as per UPSC syllabus.
