Direct action is extensively used by the central bank to enforce both qualitative and quantitative credit controls.
This method involves issuing of general instructions by the central bank to all banks. It may also take the form of issuing special instructions to erring banks
Direct action is used only as a last resort when all other methods fail to yield a desired result.
It may be
i] The central bank may refuse rediscounting facilities to commercial bank.
ii] Penalties to offending banks.
iii] The central bank may threaten a commercial bank to be taken over by it, if it fails to follow the central banks policies and instructions.