Write short notes on: 2. Issuing Directives

Write short notes on:

2. Issuing Directives
Answer: 

2. Issuing Directives is another qualitative measure of credit control used by the Central Bank. Under this method, the Central Bank issues directives or orders that must be followed by the public and the commercial banks. This is done to ensure that the credit policy followed by the Central bank is consistent with the monetary policy followed by the commercial banks.

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