Bank rate and credit control in India

This book deals with the Bank Rate and Credit control in India. Bank rate is one of the traditional quantitative techniques of credit control which affects the cost, availability and demand for credit. The Bank rate changes are unforseen in regard to the direction, timing and the extent of variations Reserve Bank of India may think of raising Bank rate under one circumstance namely, when the volume of bank credit goes on increasing and it feels that on appreciable portion of bank credit is used for financing speculative activies. If it does not increase the Bank rate at such a time, probably the tendency will be for the utilization of more and more bank credit for undesirable purposes.
The success and effectiveness of Bank rate pre-supposes the develop ment of local money market, the dependence of the commercial banks upon the central Bank and other ban king institutions. In a developing country there is a lack of well developed and organised money and capital markets.
The Bank rate should be supplemented by other quantitative and qualitative techniques of credit control. This book draws attention towards the con temporary International trends dealing with various aspects of world economic scenes such as Recession, Recovery and Growth, Inflation and unemployment, Monetary Policy and financial markets, International credit capital markets. It also discusses the and Inflationary trends in a developing country like ours and the various five year Plans showing the movements of Price Behaviour and the factors be hind these trends.