UPSC CSE Prelims
Question 53
Consider the following statements:
- The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
- Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
- The Governor of the RBI draws his power from the RBI Act.
Which of the above statements are correct?
View correct answer and explanation
Correct answer: C
Correct Option: C (1 and 3 only)
Explanation: The Central Government appoints the RBI Governor under the RBI Act, 1934; the Act also grants office powers. The authority to issue RBI directions is statutory, not a constitutional provision.
Statement / Pair / Item-wise Analysis:
1. Correct / qualifies - RBI Act section 8 provides for Central Government appointment of the Governor.
2. Incorrect / does not qualify - Government directions in public interest are rooted in RBI Act section 7, not a specific constitutional clause.
3. Correct / qualifies - The RBI Governor’s statutory authority arises under the Reserve Bank of India Act.
Option-wise Analysis:
A. Incorrect-includes item 2, which is not valid (Government directions in public interest are rooted in RBI Act section 7, not a specific constitutional clause); omits valid item 3 (The RBI Governor’s statutory authority arises under the Reserve Bank of India Act).
B. Incorrect-includes item 2, which is not valid (Government directions in public interest are rooted in RBI Act section 7, not a specific constitutional clause); omits valid item 1 (RBI Act section 8 provides for Central Government appointment of the Governor).
C. Correct-selects exactly the supported statements/items: 1, 3.
D. Incorrect-includes item 2, which is not valid (Government directions in public interest are rooted in RBI Act section 7, not a specific constitutional clause).