BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following section of the RBI Act empowers the Central Government to consult and give instructions to the Governor of the RBI to act on certain issues?

A	Section 370
B	Section 1-B
C	Section 7
D	Section 9

Explanation:

Detailed explanation-1: -The correct answer is Section 7. According to Section 7 of the RBI Act, the central government may from time to time give such directions to the RBI as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.

Detailed explanation-2: -Section 7 in The Reserve Bank of India Act, 1934.

Detailed explanation-3: -(1) A bank to be called the Reserve Bank of India shall be constituted for the purposes of taking over the management of the currency from the 1[Central Government] and of carrying on the business of banking in accordance with the provisions of this Act.

Detailed explanation-4: -(2) Subject to any such directions, the general superintendence and direction of the affairs and business of the Bank shall be entrusted to a Central Board of Directors which may exercise all powers and do all acts and things which may be exercised or done by the Bank.

There is 1 question to complete.