SECTION 7 OF THE RBI ACT

About:

• Section 7 of the RBI Act empowers the central government to issue directions to the RBI in public interest. Section 7 has two parts — consultation and then issuing a direction to the RBI for taking some action in public interest.
  
  
• This section has, however, never been invoked by the government so far.
  
  
• Sources said while the communication from the government was for consultation under Section 7, no directions were issued.
  
  
• It was speculated that if the government issued directions under this Section, RBI Governor Urjit Patel would quit as this would be seen to be infringing with the autonomy of RBI.