Question
Under Section 7 of the RBI Act, 1934, the Central
Government may give directions to the Bank in the public interest only after consultation with whom?Solution
Section 7(1) provides that 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. Subject to such directions, the general superintendence and direction of the affairs of the Bank is entrusted to the Central Board under Section 7(2). The Governor, and in his absence the nominated Deputy Governor, also has powers of general superintendence under Section 7(3). Consultation must be with the Governor.
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