what are quantitave methods of credit control by central bank..
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Some of the methods employed by the RBI to control credit creation are: I. Quantitative Method II. Qualitative Method.
The various methods employed by the RBI to control credit creation power of the commercial banks can be classified in two groups, viz., quantitative controls and qualitative controls. Quantitative controls are designed to regulate the volume of credit created by the banking system qualitative measures or selective methods are designed to regulate the flow of credit in specific uses.
The various methods employed by the RBI to control credit creation power of the commercial banks can be classified in two groups, viz., quantitative controls and qualitative controls. Quantitative controls are designed to regulate the volume of credit created by the banking system qualitative measures or selective methods are designed to regulate the flow of credit in specific uses.
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the central bank or the RBI decides the rate of interest at which a bank will give loon to people and also decide the %of money that should be used to give loon
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