Question

Explain Regulation of consumer credit as a qualitative measure of the Central Bank of India.

Answer 1

Regulation of consumer credit as a qualitative measure of the Central Bank of India is as follows:

• Variable reserve ratio, open marketing operation and policy of bank rate are included consumer credit method as quantitative measure.
• This is one of the most important tool and major weapon with which Central Bank of India control the supply and demand policy.
• In this, banks would lead to increase the stability of real national income by boosting growth of economy.