Section 7 of RBI

Section 7 of the Reserve Bank of India (RBI) Act, 1934, grants the Central Government the authority to issue directions to the RBI in the public interest, following consultation with the RBI Governor. This provision is designed to ensure that the central bank's actions align with broader national interests, particularly in situations deemed critical by the government .

The section is divided into three parts:
1. Section 7(1) allows the government to direct the RBI on matters of public interest after consulting the Governor.
2. Section 7(2) ensures that, aside from these specific directions, the general supervision and management of the RBI's affairs are vested in its Central Board of Directors.
3. Section 7(3) grants the Governor (or Deputy Governor in his absence) the power to manage and oversee the RBI's operations and business, subject to the directions given under Section 7(1) .

This section has rarely been invoked due to its potential to undermine the autonomy of the central bank. However, it has been a point of contention in situations where the government and the RBI have disagreed on policy issues, such as during the financial stress involving non-banking financial companies (NBFCs) and other economic challenges .

Comments

Post a Comment

Popular posts from this blog

TRENDING : 8 Animals That Reproduce Without Mating

Image
Nature and it's marvels never cease to amaze us. Did you know that some of it's inhabitants are capable of reproducing without mating? This is a phenomenon known as parthenogenesis. In this process, a female creates an embryo from an unfertilized egg, resulting in offspring either all male or all female. When this method is the only mode of reproduction for an animal, it's called obligate parthenogenesis. Here are the 8 such animals that reproduce without mating. 8 Animals That Reproduce Without Mating 1.Komodo Dragons In 2006, scientists discovered that Komodo dragons (Varanus komodoensis), one of the deadliest reptiles in the world, could reproduce without males. At the time, a female Komodo dragon at Chester Zoo in the U.K. laid 25 eggs without having been in contact with any males. This was considered a marvel at the time. 2. Shark   Bonnethead sharks (Sphyrna tiburo) are among the shark species known to reproduce via parthenogenesis. At Omaha's Henry Do
Read more

The World Bank

The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects. Here are some key points about the World Bank: ### Structure: - ** The World Bank Group** consists of five institutions:   - **International Bank for Reconstruction and Development (IBRD): ** Focuses on middle-income and creditworthy low-income countries.   - **International Development Association (IDA):* * Provides low-interest loans and grants to the poorest countries.   - **International Finance Corporation (IFC):** Offers investment, advisory, and asset management services to encourage private-sector development.   - **Multilateral Investment Guarantee Agency (MIGA):** Provides political risk insurance and credit enhancement to investors and lenders.   - **International Centre for Settlement of Investment Disputes (ICSID): ** Provides facilities for conciliation and arbitration of internationa
Read more

INS MUMBAI: THE MIGHTY WARSHIP OF THE INDIAN NAVY RECENTLY IN NEWS

Image
INS Mumbai: The Mighty Warship of the Indian Navy The INS Mumbai is a Delhi-class guided-missile destroyer that serves as a formidable asset to the Indian Navy. Commissioned in 2001, the warship has played a vital role in various naval operations and has been a symbol of India's maritime power. Design and Construction The INS Mumbai was built at the Mazagon Dock Limited in Mumbai and was designed by the Indian Navy's Design Bureau. The warship measures 163 meters in length and 17 meters in beam, with a displacement of 6,700 tons. It is powered by two Ukrainian-made gas turbines and two diesel engines, giving it a top speed of 30 knots. Armament and Sensors The INS Mumbai is equipped with an array of advanced weapons and sensors, making it a force to be reckoned with. Its armament includes: - 16x Kh-35 Uran anti-ship missiles - 2x Shtil-1 surface-to-air missile systems - 1x 100mm AK-100 naval gun - 4x 30mm AK-630M anti-aircraft guns - 2x RBU-6000 anti-submarine rocke
Read more