part 1

Question 1

preamble of RBI

Answer 1

“to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”

Question 2

The Reserve Bank of India (RBI) is created as a _____________________

Answer 2

body corporate.

Question 3

The RBI is established to take over the ___________________

Answer 3

the management of currency from the Central Government and conduct banking business.

Question 4

The capital of the Bank shall be

Answer 4

five crores of rupees.

Question 5

Initial offices: The RBI is required to establish offices in

Answer 5

Bombay, Calcutta, Delhi, and Madras (now Chennai).

Question 6

Before issuing directions to RBI , the Central Government must consult with the ____________________

Answer 6

Governor of the RBI.

Question 7

The RBI’s affairs and business are entrusted to a

Answer 7

Central Board of Directors.

Question 8

_________________- has the authority to oversee and manage the RBI’s operations.

Answer 8

Central Board of Directors.

Question 9

_________________- can exercise all powers that the RBI can exercise.

Answer 9

Central Board of Directors.

Question 10

The Central Board consists of various Directors, including:

Answer 10

1. governor
2. Deputy Governors: The number is limited to four.
3. Regional Directors: One from each of the four Local Boards.
4. Government-Nominated Directors: Ten.
   Government Officials: Two.

Question 11

Governor and Deputy Governors, Regional Directors, Government-Nominated Directors and Government Officials are Appointed by

Answer 11

Central Government

Question 12

The Governor and Deputy Governors -salaries and allowances are determined by

Answer 12

Central Board with the approval of the Central Government.

Question 13

Can governors and Deputy Governors be allowed to undertake part-time honorary work

Answer 13

yes

Question 14

A Deputy Governor may be appointed as the Chairman of the __________ , subject to the approval of the Central Government

Answer 14

National Bank (NABARD)

Question 15

Non-Voting Members on the Central Board

Answer 15

A Deputy Governor and the Director nominated under clause (d) of sub-section (1)([two Government officials] to be nominated by the Central Government) can attend Central Board meetings and participate in discussions but cannot vote.

Question 16

_________________________ can vote on the Governor’s behalf.

Answer 16

authorized Deputy Governor

Question 17

Governor and Deputy Governors: Their terms are fixed by the Central Government and do not exceed ______

Answer 17

five years

Question 18

are Governor and Deputy Governors eligible for reappointment

Answer 18

yes

Question 19

[ten] Directors to be nominated by the Central Government hold office for _________________

Answer 19

four years and are eligible for reappointment, but not for more than two terms (eight years total).

Question 20

terms of [two Government officials] to be nominated by the Central Government

Answer 20

Their terms are at the pleasure of the Central Government, meaning they can be removed at any time.

Question 21

Can the validity of Board actions be challenged solely on the grounds of missing members or irregularities in the Board’s composition?

Answer 21

No

Question 22

Each Local Board consists of

Answer 22

five members appointed by the Central Government.

Question 23

Local Board members are selected to represent _____________

Answer 23

territorial, economic, co-operative, and indigenous banking interests.

Question 24

The chairman of a Local Board is elected by

Answer 24

its members, ensuring that the leadership is chosen from within the Board.

Question 25

Members of a Local Board hold office for a term of

Answer 25

four years

Question 26

Term Limits: Members of a Local Board

Answer 26

they cannot serve for more than two terms, i.e. 8 years

Question 27

Certain individuals are ineligible to serve on local boards,

Answer 27

Salaried government officials (with potential exceptions)
Insolvent individuals or those who have compounded with creditors
Persons deemed mentally unsound
Officers or employees of any bank
Directors of banking companies within the meaning of clause (c) of section 5 of the 4[Banking Regulation Act, 1949], or of a co-operative bank.]

Question 28

The following individuals cannot serve on the same Local Board simultaneously

Answer 28

Partners in the same mercantile firm
Directors of the same private company
Individuals who have a general agency or power of procuration relationship

Question 29

people who are ______________- shall apply to the Governor, or to a Deputy Governor, or to the Director nominated under clause (d) of sub-section (1) of section 8 ([two Government officials] to be nominated by the Central Government).

Answer 29

Salaried government officials
Officers or employees of any bank
Directors of banking companies within the meaning of clause (c) of section 5 of the 4[Banking Regulation Act, 1949], or of a co-operative bank.]

Question 30

A Director nominated under clause (b) or (c) of sub-section (1) of section 8 will lose their position if they miss ____________________ consecutive meetings of the Central Board without permission.

Answer 30

3

Question 31

A Director or Local Board member who is removed or ceases to hold office is ineligible for reappointment for a period _____________________

Answer 31

equal to their original term

Question 32

A person who is a ____________________________ cannot be nominated as a Director or Local Board member.

Answer 32

member of Parliament or a State Legislature

Question 33

If a Director or Local Board member is elected or nominated to _______________ , they must resign from their position on the Board.

Answer 33

Parliament or a State Legislature

Question 34

If a person is nominated to a Board position while they are a member of Parliament or a State Legislature, they must resign within _____________ months to avoid the nomination being void.

Answer 34

two

Question 35

Directors resign to the

Answer 35

Central Government

Question 36

Local Board members resign to the

Answer 36

Central Board.

Question 37

If the Governor or Deputy Governor is unable to perform their duties due to infirmity or absence, the Central Government can appoint an

Answer 37

officiating person for a temporary period .

Question 38

_______________- has the authority to fill casual vacancies that occur in the office of any Local Board member.

Answer 38

Central Board

Question 39

Where any casual vacancy occurs in the office of a Director other than the vacancies provided for Governor or Deputy Governor by the ________________

Answer 39

Central Government].

Question 40

A person nominated to fill a casual vacancy holds office for

Answer 40

remaining portion of their predecessor’s term.