Which of the following is a qualitative measure of credit control used by the Reserve Bank of India?
A) CRR
B) Moral suasion
C) SLR
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Only B.
Among the options given, "Moral suasion" is a qualitative tool used by the Reserve Bank of India (RBI) for credit control. It refers to the persuasive influence exerted by the RBI on banks and financial institutions to adhere to certain credit policies without using any formal regulations or direct controls.