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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?

UPSC · 2021 · Economy
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 public interest. 3. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?

Options

1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Answer: 1 and 3 only

Explanation:
The RBI Governor is appointed by the Central Government under the RBI Act, 1934. However, no constitutional provision exists granting the government such powers; they stem from the RBI Act itself.

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