2021 GS Paper I, all questions

UPSC Prelims 2021 · GS Paper I

Question 1: Economy and Social Development

Consider the following statements :

  1. 1.The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
  2. 2.Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
  3. 3.The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

a1 and 2 only
b2 and 3 only
c1 and 3 only
d1, 2 and 3

AnswerUPSC’s answer is (c).

The RBI Governor is appointed by the Central Government under the RBI Act, 1934, and the Governor's powers and duties flow from that Act, not directly from the Constitution. The Constitution has no provision letting the Centre direct the RBI. That power sits in Section 7 of the RBI Act, which lets the Centre give the Bank directions in the public interest after consulting the Governor. Remember: appointment by the Centre, powers statutory, and Section 7 belongs to the Act, not the Constitution.

  • 1. The Central Government appoints the Governor under the RBI Act.
  • 2. The power to direct the RBI in public interest is in Section 7 of the RBI Act, not in the Constitution.
  • 3. The Governor's powers come from the RBI Act, 1934.

How you could have got this

  1. If you were sure statement 2 is not correct, (a), (b) and (d) go: each of them includes 2.

    What you needed to know: The power to direct the RBI in public interest is in Section 7 of the RBI Act, not in the Constitution.

Only (c) is left. You didn’t need statements 1 or 3.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Wrong: it takes statement 2, but the directing power comes from the RBI Act, not the Constitution.
  • (b) Wrong: it takes statement 2 and drops statement 1, which is correct.
  • (c) Right: statements 1 and 3 are correct; statement 2 wrongly credits the Constitution.
  • (d) Wrong: includes statement 2, which is false.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2021, General Studies Paper I, Series A. The paper on upsc.gov.in.