Question : Which section of the RBI Act empowers the Central Government to supersede the RBI board and issue directions considered to be necessary in the public interest to the RBI after consulting the Governor of the bank?

Option 1: Section 1

Option 2: Section 5

Option 3: Section 7

Option 4: Section 3


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Section 7


Solution : The correct answer is Section 7 .

"The Central Government may give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest," states Section 7(1) of the RBI Act in 1934.

Furthermore, the government can assign the RBI's Central Board of Directors management based on Section 7(2).

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