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Give one difference between qualitative and quantitative credit control. - Economic Applications

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Question

Give one difference between qualitative and quantitative credit control.

Distinguish Between

Solution

Qualitative credit control Quantitative credit control
They concentrate on alternative credit usage in the economy. These measures use a variety of strategies to regulate the flow of credit to specific areas of economic activity, such as margin requirements, moral suasion, and so on. By employing various approaches such as bank rate, CRR, and others, these strategies influence the entire amount of credit without distinguishing between necessary and non-essential uses of credit.
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Quantitative and Qualitative Credit Control Measures Adopted by RBI
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2021-2022 (April) Set 1
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