Selective credit control?

Selective credit control refers to qualitative method of credit control by the central bank. The method aims, unlike general or quantitative methods, at the regulation of credit taken for specific purposes or branches of economic activity.

1. What is the purpose of selective credit control methods?
2. What is qualitative or selective methods of credit control?
3. What is selective credit control class 12?
4. Who measures selective credit control?
5. Which is not selective credit control method?
6. Which of the following is a selective method of credit control?
7. What is credit control explain the different methods of selective credit control?
8. What means credit control?
9. What is mean by LRR?
10. What is qualitative credit control?
11. Who works as RBI agent?
12. What do you mean by selective credit control measures?
13. What is control through directives?

What is the purpose of selective credit control methods?

The objectives of the selective credit control policies are : To divert available funds only to the urgent and desirable purposes, To control and regulate a particular sector an economy without affecting the entire economy as a whole. To discourage wasteful and uneconomical consumer expenditure on non-essential items.

What is qualitative or selective methods of credit control?

Qualitative Method. ... Qualitative or selective methods of credit control include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.

What is selective credit control class 12?

It refers to credit control policy of the Central Bank that seeks to increase the flow of credit to priority sectors of the economy. It would also mean restricting the flow of credit to certain sectors, particularly those related to speculative business activity.

Who measures selective credit control?

Under the selective or qualitative credit control methods, the RBI encourages flow of credit only to certain types of industries and discourages the use of bank credit for certain other purposes. Under this method, extension of credit to essential purposes is encouraged and to non-essential purposes is discouraged.

Which is not selective credit control method?

Defence Question. Variable Reserve Ratio (Cash Reserve Ratio) is aimed to control only volume of credit (quantitative method) not both volume and purpose of credit for which bank gives loans.

Which of the following is a selective method of credit control?

Credit rationing is a selective qualitative credit control method.

What is credit control explain the different methods of selective credit control?

The Selective Controls are. Ceiling on Credit. The Ceiling on level of credit restricts the lending capacity of a bank to grant advances against certain controlled securities. Margin Requirements. A loan is sanctioned against Collateral Security.

What means credit control?

Credit control is a business strategy that promotes the selling of goods or services by extending credit to customers. Most businesses try to extend credit to customers with a good credit history so as to ensure payment of the goods or services.

What is mean by LRR?

LRR (Legal Reserve Ratio) refers to that legal minimum fraction of deposits which the banks are mandate to keep as cash with themselves. TheLRR is fixed by the Central Bank. It has two components: 1.Cash Reserve Ratio2.Statutory Liquidity Ratio.

What is qualitative credit control?

Qualitative method controls the manner of channelizing of cash and credit in the economy. It is a 'selective method' of control as it restricts credit for certain section where as expands for the other known as the 'priority sector' depending on the situation.

Who works as RBI agent?

The State Bank of India

works as RBI's agent at places where it has no office of its own.

What do you mean by selective credit control measures?

Selective credit controls are intended to encourage or discourage specific types of investment and expenditure by influencing the lending policy of banks and similar credit institutions.

What is control through directives?

Control Through Directives

Through a directive, the central bank can influence credit structures, the supply of credit to a certain limit for a specific purpose. The RBI issues directives to commercial banks for not lending loans to the speculative sector such as securities, etc. beyond a certain limit.