Credit Control Measures are broadly classified into two types, namely
(a) Quantitative Credit Control Measures
(b) Qualitative Credit Control Measures.
(a) Quantitative Credit Control Measures:
They comprise of the following:
- Bank Rate Policy.
- Open Market Operations.
- Varying Reserve Requirements.
(b) Qualitative Credit Control Measures:
- Change in lending margins
- The ceiling on credit or credit rationing
- Moral suasion
- Direct Action
Thus RBI aim at restricting the availability of credit through various measures for the purpose of regulating the money supply and the consequent effects on prices and growth of the economy.
