Question

Recently the of the RBI Act came into spotlight amid the war between the Central government and the Reserve Bank of India (RBI). The provision in the RBI Act empowers the government to issue directions to the RBI.

• A. Section 8
• B. Section 7
• C. Section 9
• D. Section 10

Answer 1

The Correct Option is B

1. Option A relates to the Central Board's constitution, not directive powers.
2. Option B, Section 7, is the actual provision letting the government direct the RBI.
3. Option C concerns local boards, not this power.
4. Option D concerns board membership rules, not directions to the RBI.

The correct answer is option B.