Disscuss the credit control mechanism of rbi how far has it been successful
Answers
Credit control mechanism introduced by RBI has proved a lot helpful in recent times. You need to keep in mind that RBI is also responsible for implementation and regulation of monetary policies.
• This proves helpful in maintaining the countries economical growth.
• This policy also proves helpful in regulating the availability of currency cost and maintaining deflationary and inflationary trends stable and low.
• There are a number of measures that are taken by the RBI to maintain credit control such that the flow of the cash can be regulated nationwide.
• The system of credit control is also applicable to various banking systems nation wide.
• This in turn ensures that cash is always available in the banks for the customers to withdraw.
• It helps in maintaining the ratio between the overall cash deposited and withdrawn from the banks.