Quantitative measures are used by the Reserve Bank of India to control the supply of money and credit in the economy.
1. Bank Rate : The bank rate is the rate at which the RBI lends money to commercial banks. An increase in bank rate reduces credit, while a decrease increases credit.
2. Repo Rate : The repo rate is the rate at which RBI lends money to banks against securities for a short period.
3. Reverse Repo Rate : The reverse repo rate is the rate at which RBI borrows money from banks, thereby reducing liquidity.
4. Cash Reserve Ratio (CRR) : CRR is the percentage of total deposits which banks must keep with RBI in cash form.
5. Statutory Liquidity Ratio (SLR) : SLR is the percentage of deposits that banks must maintain in liquid assets like cash, gold, and government securities.
6. Open Market Operations: RBI buys or sells government securities to control money supply.