Question

Why does the RBI Governor have ultimate authority in policy and administration?

• A. Because the Governor is elected by banks
• B. Because the Governor controls the Finance Ministry
• C. Because the Governor is simultaneously Chairman, Chief Executive, and Managing Director
• D. Because the Governor appoints the President

Answer 1

Answer:

C. Because the Governor is simultaneously Chairman, Chief Executive, and Managing Director

The RBI Governor holds multiple key roles: Chairman of the Central Board – leads the Board in policy decisions. Chief Executive – oversees the day-to-day administration of the RBI. Managing Director – ensures implementation of policies and operational control. This combination gives the Governor ultimate authority in both policy-making and administration of the RBI. The Governor is not elected by banks, does not control the Finance Ministry, and does not appoint the President.