Question

As per its preamble, RBI CANNOT have more than ______ deputy governors?
1. two
2. one
3. four
4. three

Answer 1

Correct Answer - Option 3 : four

The correct answer is four.

• As per its preamble, RBI CANNOT have more than four deputy governors.

• Current governor of RBI is Shaktikanta Das.
• ​Reserve Bank of India (RBI):
  • RBI was set up on the basis of the Hilton Young Commission recommendation in April 1935, with the enactment of the RBI Act, 1934.
  • Its first Governor was C.D. Deshmukh.
  • The headquarters of RBI is in Mumbai.

• Quantitative/General Credit Control
  • Quantitative credit controls are used to control the volume of credit and indirectly to control the inflationary and deflationary pressures caused by expansion and contraction of credit.
  • The quantitative credit control consists of:
    • Bank Rate:
      • It is also called the rediscount rate. It is the rate, at which the RBI gives finance to commercial banks.
    • Cash Reserve Ratio (CRR):
      • The RBI (Amendment) Bill, 2006, empowers RBI to prescribe CRR–Cash that banks deposits with the RBI without any floor rate or ceiling rate.
    • Statutory Liquidity Ratio (SLR):
      • It is the ratio of a liquid asset, which all commercial banks have to keep in the form of cash, gold and unencumbered approved securities equal to not more than 40% of their total demand and time deposit liabilities (ranges is 25‑40%).
    • Repo Rate:
      • It is the rate, at which RBI lends short-term money to the bank against securities.
    • Reverse Repo Rate:
      • It is the rate, at which banks park short-term excess liquidity with the RBI.
    • Open Market Operations (OMOs):
      • Under OMOs, the RBI sells G-securities in the market.