Consider the following statements regarding the Reserve Bank of India (RBI):
1. The Governor of the RBI is eligible for reappointment.
2. The general superintendence of the RBI's affairs is entrusted to the Central Board.
3. The RBI has the exclusive right to issue banknotes of all denominations.
Which of the statements given above are correct?
(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Explanation Statement 1 is correct: The Governor of the Reserve Bank of India (RBI) is eligible for reappointment. The RBI Governor serves a term of up to five years, and this term can be extended or renewed based on the discretion of the central government.
Statement 2 is correct: The general superintendence and direction of the affairs and business of the RBI are entrusted to the Central Board, which consists of nominees from the Central Government and Directors appointed under Section 8 of the RBI Act. The Board of the RBI is headed by the Governor and assisted by not more than four Deputy Governors.
Statement 3 is not correct: Under Section 22 of the RBI Act, 1934, the RBI has the sole right to issue banknotes of various denominations, except for one-rupee notes, which are issued by the Government of India. Additionally, the Government of India has the sole right to produce/ mint coins under the Coinage Act, 2011, although these coins are issued for circulation through the RBI under Sections 38 and 39 of the RBI Act, 1934.
Kutos:Economy Expert
Hello! I am a Economy expert. You can ask any question or request a detailed analysis related to this topic.
