Question

Explain briefly the quantitative methods adopted by the RBI to control credit.

Answer 1

☺ Hello friends ☺

Credit control is most important function of reserve Bank of India . Credit control in the economy is required for the smooth functioning of the economy . By using credit control method RBI tries to maintain monetary stability . There are two types of methods :

( 1 ) Quantitative control to regulate the volume of total credit .

( 2 ) Qualitative control to regulate the flow of credit .

Here , is a brief description of the qualitative and quantitative measures of credit control used by RBI .

Hope it's helps you