Consider the following statements regarding the Reserve Bank of India (RBI): 1. The Governor of the RBI is appointed by the Central Government. 2. The Governor of the RBI derives his powers from the RBI Act. 3. The Monetary Policy Committee and the Central Board of the RBI have the same composition and functions. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation:

Statements 1 and 2 are correct. The RBI Governor is appointed by the Central Government, and the Governor derives statutory powers from the Reserve Bank of India Act, 1934.
Statement 3 is incorrect. The Monetary Policy Committee (MPC) and the Central Board of the RBI are distinct bodies with different compositions and functions. The MPC is specifically concerned with determining the policy interest rate to achieve the inflation target.

Source- IE