What is rationing of credit by …
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Yogita Ingle 6 years, 11 months ago
Credit rationing means limiting the availability of credit in the market. It is a qualitative measure through which the central bank fixes the credit limit for different business activities in the economy. The main aim of credit rationing is to restrict the flow of credit towards the speculative and illegal activities. No commercial bank can exceed the limit of credit as prescribed by the Central Bank.
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