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?

The correct option is 1 and 3 only.

Statement 1 is correct:
The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. Specifically, under Section 8(1)(a) of the Reserve Bank of India Act, 1934, the Governor and Deputy Governors are appointed by the Central Government (Appointments Committee of the Cabinet).

Statement 2 is incorrect:
The Central Government does have the power to give directions to the RBI in the public interest, but this power is derived from Section 7(1) of the RBI Act, 1934, not from any provision in the Constitution of India. The Constitution of India does not contain provisions specifying directions to the RBI.

Statement 3 is correct:
The RBI was established by and functions under the Reserve Bank of India Act, 1934. The Governor derives his executive powers and authority directly from the statutory provisions outlined in the RBI Act.

Therefore, statements 1 and 3 are correct, while statement 2 is incorrect.