Who is he?

Reserve Bank of India

Economic imbalance

More money Less money

CREDIT CONTROL POLICY OF RBI

Credit control policy is the regulation of credit by the central bank .It is used by the RBI to bring “Economic Development with Stability”. It ensures an adequate level of liquidity enough to attain high economic growth rate along with maximum utilization of resource.

Objectives of credit control• Economic growth

• Price stability

• Full employment

• Methods of credit control

Quantitative measures

Qualitative measures

OMO BANK RATE

CRRREVERSER

EPORATE

DIRECT ACTION

MORAL SUASION

CREDIT RATIONING

SLR

BANK RATE

REPO RATE

Quantitative Methods• 1.OMO: Open market operations refers to

direct buying and selling of govt securities in the money market by the central bank.

• 2.CRR: Every commercial bank is required by law to maintain certain percentage of its deposit with the central bank.

• 3.SLR: It says that every commercial bank have to keep with themselves certain percentage of their deposits in terms of gold or cash.

• 4.REPO RATE: It is the rate at which bank borrows from the RBI (short term loan)

• 5.REVERSE REPORATE: It Is The Rate At Which RBI Takes Loans From The Commercial Banks.

• 6.BANK RATE: The bank rate or discount rate is the at which the central bank is prepared to buy or discount the first class bills of exchange.

Present prevailing interest ratesCRR 4.75%SLR 24%REPO RATE 8.5%

REVERSE REPO RATE

7.5%

BANK RATE 9.5%