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      Question

      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 Correct Answer Incorrect Answer
      B Section 1-B Correct Answer Incorrect Answer
      C Section 7 Correct Answer Incorrect Answer
      D Section 44 Correct Answer Incorrect Answer
      E Section 77 Correct Answer Incorrect Answer

      Solution

      The Section 7 of the RBI Act empowers the Central Government to consult and give instructions to the Governor of the RBI to act on certain issues, that the government considers serious and in public interest. The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest," says Section 7(1) of the RBI Act, 1934. Further, Section 7 (2) gives the government powers to entrust the running of the RBI to its Central Board of Directors.

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