Which section of the RBI Act empowers the Central Government to supersede the RBI board and issue directions considered to be ‘necessary in public interest’ to the RBI, after consulting the Governor of the bank?

Options

A. Section 5
B. Section 7
C. Section 3
D. Section 1

Answer

B

Explanation

The Section 7 of the RBI Act empowers the government to give directions to the central bank on matters of public interest.