Under which qualitative tool, RBI fixes maximum limit to loans and advances that can be made above which the commercial banks cannot exceed?
Under which qualitative tool, RBI fixes maximum limit to loans and advances that can be made above which the commercial banks cannot exceed?
[A]Rationing of credit
[B]Margin Requirement
[C]Loan to Value ratio
[D]Moral suasion
Rationing of credit
Rationing of credit : Under this method, RBI fixes a maximum limit of loans and advances that can be made above which the commercial banks cannot exceed.