Correct option is B
Moral suasion is a qualitative measure of credit control used by the Reserve Bank of India. It involves persuasion and advice by the RBI to the banks regarding their lending and investment policies but does not include mandatory regulations.
- CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) are quantitative measures of credit control that mandate the amount of funds banks must hold in reserve.
CRR (Cash Reserve Ratio):
CRR is the percentage of a bank's total deposits that it must hold as reserves in cash with the central bank.
It's a tool used by the central bank to regulate the liquidity in the banking system.
SLR (Statutory Liquidity Ratio):
SLR is the percentage of a bank's total deposits that it must maintain in the form of liquid assets like cash, gold, or government-approved securities.
It's also a tool used by the central bank to control the liquidity in the banking system.