Describe the different methods of credit control used by Central Bank? ( केन्द्रीय बैंकले प्रयोग गर्ने कर्जा नियन्त्रणका विभिन्न विधिहरू वर्णन गर्नुहोस्? )
Credit control is an instrument, which is used by central bank for controlling of money supply in the economy. At the time of inflation in the economy, there is less flow of money in the economy and vice versa. ( क्रेडिट नियन्त्रण भनेको अर्थतन्त्रमा मुद्रा आपूर्ति नियन्त्रण गर्न केन्द्रीय बैंकले प्रयोग गर्ने एउटा साधन हो। अर्थतन्त्रमा मुद्रास्फीतिको समयमा, अर्थतन्त्रमा पैसाको प्रवाह कम हुन्छ र यसको विपरीत। )
The various methods or instruments of the credit control are as follows:
Quantitative measures / General methods:
1.Bank rate: Bank rate is the rate at which the central bank provided loan to the commercial bank without securities. If the Bank rate is increase the market rate is also increase and money supply decrease. Similarly, if the Bank rate is decrease then market interest rate is also decrease and money supply is increase. ( बैंक दर: केन्द्रीय बैंकले धितोपत्र बिना वाणिज्य बैंकलाई ऋण उपलब्ध गराएको दर हो। बैंक दर बढ्यो भने बजार दर पनि बढ्छ र मुद्रा आपूर्ति घट्छ। त्यसैगरी बैंकको ब्याजदर घटेमा बजारको ब्याजदर पनि घट्छ र मुद्रा आपूर्ति बढ्छ । )
2.Cash reserve ratio ( CRR ): The minimum % of deposit amount that the commercial banks should kept deposit or to maintain in the central bank in the form of cash is called CRR. If CRR increase, amount of deposit with banks decrease then money supply also decease and vice versa. ( नगद रिजर्भ अनुपात (CRR): वाणिज्य बैंकहरूले नगदको रूपमा केन्द्रीय बैंकमा निक्षेप राख्न वा राख्नु पर्ने निक्षेप रकमको न्यूनतम % लाई CRR भनिन्छ। यदि सीआरआर बढ्छ भने, बैंकहरूमा निक्षेपको मात्रा घट्छ भने मुद्रा आपूर्ति पनि घट्छ र उल्टो। )
3.Statutory liquidity Ratio ( SLR ): The minimum % of amount that Commercial banks should maintain as liquidity in the form of cash, gold, silver within them ( banks ) is called SLR. If the SLR is increase then the amount of deposit with banks decrease then money supply also decrease. ( वैधानिक तरलता अनुपात (SLR): वाणिज्य बैंकहरूले आफ्नो (बैंक) भित्र नगद, सुन, चाँदीको रूपमा तरलताको रूपमा कायम गर्नुपर्ने न्यूनतम रकमलाई SLR भनिन्छ। एसएलआर बढ्यो भने बैंकमा निक्षेपको मात्रा घट्छ भने मुद्रा आपूर्ति पनि घट्छ । )
4.Repo rate & Reserve Repo rate: Repo rate is short term period loan which is provided by central bank to commercial bank on the collateral of government securities. If Repo rate increase then money supply decrease and if repo rate decrease then money supply increase. ( रिपो दर र रिजर्भ रिपो दर: रिपो दर भनेको छोटो अवधिको ऋण हो जुन केन्द्रीय बैंकले वाणिज्य बैंकलाई सरकारी धितोको संपार्श्विकमा प्रदान गर्दछ। रेपो दर बढ्यो भने मुद्रा आपूर्ति घट्छ र रेपो दर घट्यो भने मुद्रा आपूर्ति बढ्छ। )
5.Reserve repo rate: is the rate at which the central bank accept the deposit from the commercial bank. It is also known as reserve repurchase rate. If the reserve repo rate is increase then money supply decrease and if reserve repo rate is decrease then money supply increase.
6.Open market operation ( OMP ): Open market operations means the market place where the buying and selling of government securities are done by central bank in an economy then it is called OMP.
At the time of inflation in economy , central bank issues government securities or sales the government securities in economy and it results money collects to central banks and money supply decrease and vice versa.
Qualitative measures or Selective measures:
1.Margin Requirements ( MR ): when the commercial banks increase or decrease the rate of the safety of money margin from the total valuation of collateral then there is change in money supply in economy. If MR increase then money supply decrease , likewise if MR decrease then money supply increase.
Eg: If total valuation of collateral is 100 and if MR is 10% then total money disbursement as loan is 90, so MR is increase to 30% then Loan disbursement amount is 70 only. Which result decrease in money supply.
2.Moral Suasion: when the central banks gives advice or sticks order to follows the NRB Directives regarding the disbursement of loan then the such condition is called moral suasion.
3.Credit Rationing: If the central banks fixed the credit or loan quotas for the particular sector of economy then such type of condition is called as credit rationing. By credit rationing the money supply for particular sectors of economy can be control. Eg: easily loan available for industrial or productive sector and for agricultural sector.