The non-official directors in the Reserve Bank of India’s (RBI) central board include 10 government-nominated directors, 2 government officials, and 4 directors representing the RBI’s four local boards. What is the tenure of the officials on the RBI board?
- AOption (a)
Six years
- BOption (b)
Two years
- COption (c)
Three years
- DOption (d)
Four years
- EOption (e)
Five years
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Correct answer
Four years
Why this answer is correct
The correct answer is Four years.
In News
- Non-official directors on the RBI’s central board, including the 10 government-nominated directors and 4 directors representing four local boards, have a tenure of four years.
Key Points
- The RBI central board is constituted as per the Reserve Bank of India Act, 1934, and nominated directors serve four-year terms.
- The Governor and Deputy Governors hold office for terms fixed by the Central Government, typically up to five years.
- Two government officials are also members of the board during the pleasure of the government.
- The four local boards represent Mumbai, Kolkata, Chennai, and Delhi, each with directors appointed for a four-year term.
- The term provides continuity in policy-making, enabling stable governance and oversight in RBI operations.
- Board members include experts from diverse fields, enhancing RBI’s functioning and decision-making with broad perspectives.
- The four-year tenure aligns with the Government’s mechanism for appointments, maintaining governance continuity.
Additional Information
- The Reserve Bank of India (RBI), established on April 1, 1935, operates under the Reserve Bank of India Act, 1934.
- HQ - Mumbai
- Governor - Sanjay Malhotra
- The Central Board of Directors is the highest decision-making body within the RBI.
- The board consists of the Governor, up to four Deputy Governors, 10 government-nominated non-official directors, two government officials, and four local board directors.
- The RBI’s governance structure balances political oversight with expertise from various economic, financial, and banking sectors.
- The Governor of RBI currently serves up to a five-year term, subject to government appointment.