Question

Which of the following points indicates that RBI is controlling the commercial banks? 

Options

• RBI controls the commercial banks via various instruments like Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), Bank Rate, etc 

• The ratios and rates are fixed by RBI an~ it is mandatory for all the commercial banks to follow or maintain these rates

• All these measures control the commercials banks' operations and also control money supply in Indian economy

• All of the above 

Answer 1

All of the above

Explanation:

The RBI regulates commercial banks using a variety of tools, including the Statutory Liquidity Ratio (SLR), CRR (Cash Reserve Ratio), Bank Rate, Prime Rate Repo Rate, Reverse Repo Rate, Lending (PLR) as well as for deciding on interest rates and nature of several sectors' endings These are those RBI-set ratios and rates, as well as All commercial banks are required to participate maintain or follow these rates all of these actions control the activities of commercial banks and manage the money supply in the Indian economy.