QUANTITATIVE CREDIT CONTROL General Measures QUALITITATIVE CREDIT CONTROL Selective Measures

53.  QUANTITATIVE CREDIT CONTROL
General Measures
QUALITITATIVE CREDIT CONTROL
Selective Measures
1.      Meaning
These measures are directed towards influencing the total volume or credit in the economy.

2.      Measures
Quantitative Credit Control Measures include:
(a)    Bank rate Policy
(b)   Open Market Operation
(c)    Cash Reserve Ratio
(d)   Statutory Liquidity Ratio

3.      Purpose
Quantitative Credit Control measures aim at controlling the total volume of credit. They are devised to expand or contract the liquidity position of commercial banks.

These measures are directed towards the particular use of credit and not its total volume.


Qualitative Credit Control Measures include:
(a)    Ceiling on Credit
(b)   Margin Requirements
(c)    Issue of Directives
(d)   Moral Suasion


Qualitative Measures aim at controlling the use of purpose of credit. They are devised to provide funds for economic and social developments.