How is RBI controlling the Commercial Banks?

d.eandeconomicreform
cbse

#1

(i)RBI controls the Commercial Banks by vari-ous instruments like Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), Bank Rate, Prime Lending Ratio (PLR), Repo Rate, Reverse Repo Rate and fixing the interest rates and deciding the nature of lending to various sectors.
(ii) These are those ratios and rates that are fixed
by RBI and it is mandatory for all the com-mercial banks to follow or maintain these rates.
(iii) All these measures control the commercial
banks operations and also control money supply in Indian Economy.