In which way RBI regulate and …

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In which way RBI regulate and control the funtionig of othrr banks?

Posted by Arpit Maurya 6 years ago

CBSE > Class 10 > Social Science

2 answers

Arpit Maurya 6 years ago

Bt n points 5

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Yogita Ingle 6 years ago

The RBI undertakes the responsibility of controlling credit created by the commercial banks. RBI uses two methods to control the extra flow of money in the economy. These methods are quantitative and qualitative techniques to control and regulate the credit flow in the country. When RBI observes that the economy has sufficient money supply and it may cause inflationary situation in the country then it squeezes the money supply through its tight monetary policy and vice versa.

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