ExamCompetition Forum Question Papers Ask A Question Mock Test Learn & Earn Sign Up Login Menu



0 vote

Question 4:How is RBI controlling the commercial banks?

Asked on by | Votes 0 | Views: 30 | Tags: 11th class     | economics     | Add Bounty

Question 4:

How is RBI controlling the commercial banks?


Share on Facebook      Share on Whatsapp       Share on Twitter




1 answers

0 vote
Answered by on | Votes 0 |

Answer:

RBI controls the commercial banks viavarious instruments like Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), Bank Rate, Prime Lending (PLR), Repo Rate, Reverse Repo Rate and fixing the interest rates and deciding the nature of lending to various sectors. These are those ratios and rates that are fixed by RBI and it is mandatory for all the commercial banks to follow or maintain these rates. All these measures control the commercials banks’ operations and also control money supply in Indian economy.

Join Telegram Group




Answer This Question

Name:
Email:
Answer :
Sum of (3+3)
Submit: