Question

Write short note on Issuing Directives.

Answer 1

definition of directive. formal and usually mandatory executive order or official pronouncements on a policy or procedure. or one which...

Answer 2

Answer:

Issuing directive is a qualitative measure of credit control that is used by the Central Bank.

• According to this process, the central bank issues directives or orders that both public and commercial banks need to follow. This is done to ensure that the central banks ' credit policy is aligned with the monetary policy followed by the commercial banks.
• Through this, it communicates the policies to be followed to the banks thus giving credit in order to be in accordance with the monetary policy as a whole.