What are credit control measures of the RBI?
The different instruments of credit control used by the Reserve Bank of India are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs).
What are the measures of credit control?
The quantitative measures of credit control are as follows:
- Bank Rate Policy.
- Open Market Operations.
- Cash Reserve Ratio.
- Statutory Liquidity Ratio.
- Margin requirements.
- Consumer Credit Regulation.
- RBI Guidelines.
- Rationing of credit.
What are the various credit control measures of RBI Mcq?
There are two different types of credit control measures used by RBI : Quantitative and Qualitative.
How many instruments are used for credit control?
These include bank rate policy, open market operations, Statutory Liquidity Ratio, Repo rate, Reverse Repo rate and Cash Reserve Ratio.
Which is the instrument used by RBI under general credit control Mcq?
Which is the instrument used by RBI under general credit control? The bank rate, also known as the discount rate, is the rate of interest charged by the RBI for providing funds or loans to the banking system.
Which among the following are major of credit control?
The important quantitative methods of credit control are- (a) bank rate, (b) open market operations, and (c) cash-reserve ratio. 2.
Which of the following instrument is used by RBI to control their credit?
3. Cash Reserve Ratio (CRR): This is a very important and effective instrument of credit control.
Which one of the following is a quantitative tool of credit control used by RBI?
The quantitative measures of credit control are : Bank Rate Policy: The bank rate is the Official interest rate at which RBI rediscounts the approved bills held by commercial banks. For controlling the credit, inflation and money supply, RBI will increase the Bank Rate.
What is credit control and monitoring?
Credit control is a business strategy that promotes the selling of goods or services by extending credit to customers. Most businesses try to extend credit to customers with a good credit history so as to ensure payment of the goods or services.
What is credit control by RBI?
Credit control is an important tool of the monetary policy used by Reserve Bank of India (central bank) to control the demand and supply of money and flow of credit in an economy. RBI keeps control over the credit created by commercial banks.
What are the measures taken by the RBI to control inflation?
2. The RBI and credit controlThe RBI has been assigned the task of controllingthe inflationary pressures in the economy.Credit control measures by the RBI :Quantitative and qualitativeQuantitative methods: regulate only thequantity of credit and not the use of which it isput to.
What is the credit squeeze policy of the RBI?
Since 1973, the Reserve Bank has adopted a strictly dear money policy and resorted to a credit squeeze in order to reduce the inflationary pressure on the economy. In fact, under the credit squeeze policy, the Reserve Bank has employed a series a monetary measures with the following objectives:
What is selective controls by RBI?
The RBI has used this method for regulating the flow of credit of specific branches of economic activity and thus check the misuse of borrowing facilities. Commercial banks have been prohibited from extending credit for speculative hoarding of such commodities by traders. This is the main thrust of selective controls.