Quantitative tools of credit control – Measures of credit control – Meaning

Credit control measures refer to the measures adopted by the central bank to control the cost, availability, volume, direction and purpose of credit /money supply in the economy.

In India the control of credit is done with the help of the monetary policy which is announced in April every year with a mid-quarterly review every 45 days.

The central bank uses two types of tools to regulate credit. They are

a] Quantitative tools of credit control  or the General measures

b] Qualitative tools of credit control or the Selective measures.

Posted in General Economics