The correct answer is Only 2. Key Points The Finance minister is the head of the Ministry of Finance in India. The office of Finance minister was formed on 29 October 1946. The finance minister is responsible for fiscal policy in India. He allocates the Budget to different ministries and departments. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934. Fiscal policy is the policy by which the government take decisions about taxation and the amount to be spent. The finance minister is appointed by the president on the advice of the Prime Minister. The first finance minister of Independent India was Shanmukham Chetty. The current finance minister of India (as of July 2020) is Nirmala Sitharaman.