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CBSE Class 12-commerce Answered

What is meant by selective credit control?
Asked by Topperlearning User | 18 Apr, 2016, 10:57: AM
answered-by-expert Expert Answer

Selective credit control means the discriminatory policy of the RBI in favour or against certain sectors of the economy. RBI may try to encourage flow of credit in the production of certain prioritised sectors with positive selective credit controls and may control flow of credit in the non-prioritised sectors. RBI also gives negative application of selective credit control in the case of speculative activities during the inflationary situation.

Answered by | 18 Apr, 2016, 12:57: PM

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