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  1. The credit control operation in India is performed by
    1. Rural banks
    2. Commercial banks
    3. Reserve Bank of India
    4. State Bank of India
Correct Option: C

Credit control is most important function of Reserve Bank of India. By using credit control methods RBI tries to maintain monetary stability. There are two types of methods: (a) Quantitative control to regulate the volume of total credit; and (b) Qualitative Control to regulate the flow of credit.



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