2 economics project on role of rbi in credit control
Answers
Answer:
Credit control is an important tool used by Reserve Bank of India, a major weapon of the monetary policy used to control the demand and supply of money (liquidity) in the economy. Central Bank administers control over the credit that the commercial banks grant. Such a method is used by RBI to bring "Economic Development with Stability". It means that banks will not only control inflationary trends in the economy but also boost economic growth which would ultimately lead to increase in real national income stability. In view of its functions such as issuing notes and custodian of cash reserves, credit not being controlled by RBI would lead to Social and Economic instability in the country.
Answer:
RBI stands for Reserve Bank of India. RBI works as the banker of the bank for the Indian economy. Issuing currency, maintain money flow and regulating the Economy market is its main role. RBI is one the one who fundraise as well as helps to a better channel to boost the financial, Economical and social well being of the county.
Here,
Credit control is the quantity method by RBI which is used to control rate policy, operations for the open markets and the variable for the reserve ratio. It also helps in the regulation of margin, rationing of credits, as well as action for the banks in consumer credit and direct and the other financial institutions.