Consider the following statements : 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest. 3. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?

Statements 1 and 3 are correct because the RBI Governor is appointed by the Central Government and derives all operational authority from the RBI Act, 1934. Statement 2 is incorrect because the power to issue directions to the RBI in the public interest is a statutory right under Section 7 of the RBI Act, not a provision found in the Constitution of India. The core concept tested is the legal and institutional framework governing the Reserve Bank of India as a statutory body.