Banking General Awareness Reserve Bank of India Question Bank Practice Questions - Reserve Bank of India - Structure and Functions

  • question_answer
    Which one of the following tools is used by RBI for selective credit control?

    A)  It advises banks to lend against certain commodities

    B)  It advises banks to recall the loans for advances against certain commodities

    C)  It advises banks to charge higher rate of interest for advance against certain commodities.

    D)  It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable.

    E)  None of these

    Correct Answer: B


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