Which of the following scenarios best illustrates the use of 'Moral Suasion' as a qualitative credit control tool by the Reserve Bank of India?
Options:
- A: The RBI Governor holding an informal meeting with the heads of commercial banks to persuade them to pass on the benefits of repo rate cuts to consumers.
- B: The RBI issuing a directive to commercial banks to maintain a minimum margin of 40% against loans secured by gold ornaments.
- C: The RBI imposing a financial penalty on a public sector bank for failing to meet its Priority Sector Lending (PSL) targets.
- D: The RBI selling short-term treasury bills to absorb excess liquidity from the interbank call money market.
Related Practice Questions:
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