The methods of credit control used by RBI includes
(i) Open market operation
(ii) Changes in CRR and SLR
(iii) Selective credit control
(iv) Changes in SLR
A)(i), (ii) and (iii)
B)(ii), (iii) and (iv)
C)(i), (iii) and (iv)
D)(i), (ii), (iii) and (iv)

Question

Quizplus · Accepted Answer

The Reserve Bank of India (RBI) uses various methods for credit control, including open market operations (buying and selling government securities to control liquidity), changes in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) to regulate the amount of funds banks can lend, and selective credit controls to direct credit to specific sectors. Changes in SLR are mentioned separately but are part of (ii), making all options correct.

The Methods of Credit Control Used by RBI Includes