Which section of the RBI Act empowers the Central Government to supersede the RBI board and issue directions considered to be ‘necessary in public interest’ to the RBI, after consulting the Governor of the bank?

Section 7

The correct answer is Option 3 - Section 7

Section 7 of the Reserve Bank of India (RBI) Act, 1934 empowers the Central Government to supersede the RBI board and issue directions considered to be 'necessary in the public interest' to the RBI, after consulting the Governor of the bank.