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 derives his power from the RBI Act.
Which of the above statements are correct?
According to Section 8 of the RBI Act, 1934, a Governor and (not more than four) Deputy Governors are to be appointed by the Central Government. Hence, statement 1 is correct. According to Section 7 of the RBI Act, 1934: The 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. There is no such provision in the Constitution of India. Hence, statement 2 is not correct. According to Section 7 of the RBI Act, 1934: The Governor and, in his absence, the Deputy Governor nominated by him, shall also have powers of general superintendence and direction of the affairs and the business of the Bank. They may exercise all powers and do all acts and things that may be exercised or done by the Bank. Hence, statement 3 is correct.