Question

What do you mean by quantitative instruments of credit control? Explain any two.

Answer 1

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 methods RBI tries to maintain monetary stability. There are two types of methods:

Quantitative control to regulates the volume of total credit.Qualitative Control to regulates the flow of credit

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