Moral suasion refers to the persuasive approach of the central bank towards the commercial banks in making the latter follow and implements the policies of the former. Though the central bank is empowered to take direct action on the erring or violating commercial banks, yet it exercises that option only rarely. In its place, the central bank takes efforts to explain to the commercial banks the need for following certain policies. This is done either through periodical conference with commercial banks, or by appealing to the sentiments of the commercial banks. In effect this method aims at bringing to commercial banks into line through use of moral force instead of resorting to the legal powers. It should be noted that this method has no legal back up or support. It is merely applied using the conventional relationship between the commercial banks and the central bank. It has been quite successful in countries like UK, France, Holland and others. But it has not been very effective in USA under the unit banking system. In India, the RBI has found this to be very effective as there exists a very cordial relationship between the central bank and commercial banks. Of course, the success of this policy depends on the prestige, influence and leadership of the central bank Further since it has no legal back up in times of credit expansion it is not effective.What is moral suasion? by BMS Team
You are here: Home > What is moral suasion?
What is moral suasion?
About BMS TeamWe, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
Register or Login on BMS
- True Facts of TYBMS Results 2011! July 31, 2011
- FAQs about TYBMS Results! July 30, 2011
- TYBMS Sem 5 Revised Examination Timetable 2012 August 22, 2012
- FYBMS 2012 Cut-off Analysis for BMS Colleges May 27, 2012
- 10 Cool Superb Group Admin Jokes, Trolls, Funny Status For WhatsApp, Facebook June 11, 2014
- Top 10 Quick Tips To Become A Good Intern By Aman Vora November 24, 2014
- 10 Quick Tips To Be A Successful Intern By Aanand Pandey November 24, 2014
- 6 Simple Tips To Crack TYBMS Project Viva Exam By Aanand Pandey November 24, 2014
- 7 Helpful Tips To Crack TYBMS Project Viva Exam By Aman Vora November 24, 2014
- 7 Commonly Asked Questions in TYBMS Project Vivas By Rahul Sawant November 24, 2014
- Pankaj Chauhan: tybms sem 6 revised atkt exam operations research ...
- Dhaval Shah: can you explain in detail how do we have to prepar...
- android oyun: Excellent post. I'm experiencing a few of these i...
- BMS: The viva dates are fixed by the University and it ...
- kishan joshi: The viva dates are fix ie 1st to 6th December or i...
14th November 2014 2011 2014 BMS employment exams facebook Free download Google Plus Government Job Hindi Serials images India Indian Television jobs meaning movie mumbai Mumbai Colleges Myspace notification Notifications november October 2014 openings photos pictures Pinterest posts Practice Questions Prelims Papers Question Papers recruitment Sarkari Naukri sem 5 Television Updates TV Serials TYBMS TYBMS Gyan Vacancy Wallpapers whatsapp Written Episode Written update Written Updates
Content writers, content creators, forum posters and community managers
Location: Borivali (Gorai), India
Content, SMM, Sales and Events Internships
Location: Mumbai. , India
at ThinkLink Learning
Location: Mumbai, India
Business Development Executive
at Azure 360 Degree Communications LLP
Location: Santacruz E, India