Question

name the method by which rhe reserve bank seeks to limit the maximum amount of loans and advances
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Answer 1

Credit control tool method by which the reserve bank seeks to limit the maximum amount of loans and advances

Explanation:

• Credit control is a method used by the Reserve Bank of India to control the demand and supply of money in the economy.
• Central Bank administers oversight of the credit issued by commercial banks. RBI uses such a method to bring "Economic Development with Stability". It means that banks will not only control economic inflationary trends but also boost economic growth that would ultimately lead to an increase in the stability of real national income.