WebJul 16, 2015 · There are 2 types of methods employed by the RBI to control credit creation: Quantitative method Qualitative method Quantitative method: Bank rate: It is the rate of interest at which central bank lends funds to commercial banks. During excess demand or inflationary gap, central bank increases bank rate. WebQuantitative credit controls are used to maintain proper quantity of credit of money supply in market. Some of the important general credit control methods are Bank Rate Policy Bank rate is the rate at which the Central bank lends money to the commercial banks for their liquidity requirements. Bank rate is also called discount rate.

Quantitative and Qualitative Credit Control methods

WebOther qualitative methods of credit control include the use of regulatory powers to enforce rules and regulations on the behavior of financial institutions, as well as the use of "macroprudential" measures, which are designed to address … WebQualitative Methods of credit control refers to the monetary policy by the central bank which includes those instruments that focus on the selected sectors of the economy to control … artis indonesia dengan followers terbanyak

Credit Control: Quantitative Measures v/s Qualitative

WebJan 5, 2024 · Qualitative Methods Qualitative instruments are also known as selective instruments of the RBI's monetary policy. These instruments are used for discriminating … WebSelective / Qualitative Credit Control Methods of RBI Under Selective Credit Control, credit is provided to selected borrowers for selected purpose, depending upon the use to which the control tries to regulate the quality of credit - the direction towards the credit flows. The Selective Controls are WebQualitative Methods of Credit Control: Objectives: While general credit controls operate on the cost and total volume of credit, selective credit controls relate to tools available with … artis indonesia islam bertato