Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — 1 and 3 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is correct: The RBI Governor is appointed by the Central Government (specifically the Appointments Committee of the Cabinet) as per the provisions of Section 8 of the RBI Act, 1934. Statement 2 is incorrect: The power of the Central Government to issue directions to the RBI in public interest is derived from Section 7 of the Reserve Bank of India Act, 1934, not from the Constitution of India (the RBI is a statutory body, not a constitutional one). Statement 3 is correct: The RBI Governor's executive powers, responsibilities, and statutory mandate are derived from the Reserve Bank of India Act, 1934.
The RBI is not mentioned in the Constitution of India; it is a statutory body created by an Act of Parliament (RBI Act, 1934). Thus, constitutional provisions cannot govern RBI directions.
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