- No bank held shares in a company as pledge or mortgagee in excess of the limit of 30% of the paid-up capital of that company or 30% of the banku2019s Paid-up capital and reserves, whichever is less.
- Open market operations refer to sale or purchase of government securities by RBI in the open market.
- Selective credit control is another tool which RBI uses for monetary control. It prevents holding of essential commodities and resultant rise in their prices. Presently buffer stocks of sugar, unreleased stocks of sugar with sugar mills representing free sale sugar and levy sugar are covered by SCC.
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