Q. Consider the following statements with respect to the Governor of the Reserve Bank of India (RBI):
1.The Governor is appointed by the President of India.
2.The Governor cannot be reappointed after the completion of the tenure.
3.The Governor serves at the pleasure of the President.
How many of the statements given above are correct?
Answer: D
Notes:
Explanations –
Statements 1, 2 and 3 are incorrect. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government, specifically through recommendations by an Appointment Committee, with the involvement of the Finance Ministry and the Prime Minister, as per the Reserve Bank of India Act, 1934. There is no restriction on reappointment. The tenure of an RBI Governor is typically up to five years, but it can be extended, or they can be reappointed depending on the government’s decision. Unlike state governors, who serve at the pleasure of the President, the RBI Governor serves under the provisions of the Reserve Bank of India Act, 1934, and their term is fixed or extended by the Central Government.
Source: AIR
