Question

Which of the following statements about the Central Board of RBI is correct?

• A. It only approves policies of the Government
• B. It appoints state bank governors
• C. It supervises commercial banks directly
• D. Formulates and monitors policies of RBI

Answer 1

Answer:

D. Formulates and monitors policies of RBI

The Central Board of Directors is the apex authority of the RBI. It formulates and monitors the policies of the Reserve Bank, ensuring effective governance and financial stability. It does not merely approve government policies or directly supervise commercial banks It also does not appoint State Bank governors ; that is the prerogative of the Government of India. This distinction is important for understanding RBI’s governance structure.