Question

Under Section 3 of the RBI Act, 1934, the Reserve Bank of India is constituted for the purpose of taking over the management of which function from the Central Government?

Q: Answer-Under Section 3 of the RBI Act, 1934, the Reserve Bank of India is constituted for the purpose of ta...

Section 31 provides that the Reserve Bank of India shall be constituted for the purposes of taking over the management of the currency from the Central Government and of carrying on the business of banking in accordance with the provisions of the Act. Under Section 32, the Bank is a body corporate with perpetual succession and a common seal, and may sue and be sued by its name. The core purpose stated in Section 3 is taking over the management of the currency.