Detailed Explanation:

Answer: Option 3 — 1 and 3 only

This question tests the understanding of the constitutional and statutory framework governing the Reserve Bank of India. While the RBI Governor is appointed by the Central Government and derives powers from the RBI Act, the power to issue directions comes from statutory provisions, not the Constitution.

✅ Statement 1 – Correct: The Governor of RBI is appointed by the Central Government under Section 8 of the RBI Act, 1934, through the Appointments Committee of the Cabinet.

❌ Statement 2 – Incorrect: The Constitution of India does not contain any provision giving the Central Government the right to issue directions to the RBI; this power comes from Section 7 of the RBI Act, 1934, which is a statutory provision, not a constitutional one.

✅ Statement 3 – Correct: The Governor of RBI derives all powers, functions, and responsibilities from the Reserve Bank of India Act, 1934, which defines the Governor's role in monetary policy, banking regulation, and overall central banking functions.

📝 Short Notes: Reserve Bank of India – Constitutional and Statutory Framework

• Establishment: RBI was established on April 1, 1935, under the RBI Act, 1934. It was nationalized in 1949.
• Constitutional Status: The Constitution does not explicitly mention the RBI; it derives its authority from the RBI Act, 1934.
• Governor's Appointment: Appointed by the Central Government (Appointments Committee of Cabinet) for a tenure of 4 years, extendable and subject to early termination.
• Central Board: The RBI is governed by a Central Board of Directors appointed by the Government under Section 8 of the Act.
• Section 7 of RBI Act: Empowers the Central Government to issue directions to the RBI in public interest after consultation with the Governor. This is a statutory power, not a constitutional provision.
• Key Functions: Monetary policy formulation, currency issuance, banker to Government, banking regulation and supervision, foreign exchange management, and financial stability.