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www.gktoday.in What are rbis qualitative and quantifiable instruments of recognition attend? 2010-05-06 05:05:00 GKToday The government through the reserve buzzword of India employs the financial policy as an instrument of achieving the objectives of general economic policy. The important objectives of the financial policy are as follows: 1. 2. 3. 4. 5. Regulation of monetary growth and maintenance of price stability Ensuring adequate refinement of cite Assist economic growth Encourage geological period of credit into priority and neglected sectors Strengthening of the pious platitudeing arranging of the country The three-figure or general measures influence the follow strength of the credit while the qualitative measures influence the discriminating or extra use of credit. substitute Bank of India has the indicant to influence the volume of credit created by banks in India. The banking ruler act 1949 says that the make Bank of India can ask a ny(prenominal) incident bank (or even all the banks i.e. banking system of the country) to not to lend to particular groups/ persons. Apart from this run batted in is armed with weapons to go steady the money grocery store in India.

For example for each one bank has to gear up a attest from RBI to do banking business in India and this license is always root word to cancellation by RBI provided the bank does not fulfill the requirements stipulated by RBI. Each scheduled bank needs to send a weekly report to RBI which shows its assets and liabilities. The quantitative measures of credit control are : 1. 2. 3. 4. Bank Ra te indemnity: The bank esteem is the Offic! ial interest rate at which RBI rediscounts the clear bills held by commercial banks. For controlling the credit, largeness and money supply, RBI will increase the Bank Rate. afoot(predicate) Bank Rate is 6%. Open Market trading operations: OMO The Open market place Operations refer to direct gross sales and secure of securities and bills in the open market by deem bank of India. The aim is to control volume of credit. Cash Reserve balance: Cash reserve ratio refers...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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