Question

how does rbi control credit?6 points​

Answer 1

✌Quantitative Measures.
Bank Rate Policy.

✌Open Market Operations.

✌Cash Reserve Ratio.

✌Statutory Liquidity Ratio.

✌Qualitative Measures.

✌Margin requirements.

✌Consumer Credit Regulation.

✌RBI Guidelines.

✌Rationing of credit.

✌Moral Suasion.

✌Direct Action.


components of the monetary policy of the RBIwhich is used to regulate the money supply, level of inflation and liquidity in the country. ... On the other hand, when the RBI needs to pump funds into the system, it lowers CRRwhich increases the loanable funds with the banks