Banking Term: Selective Credit Control
Find important banking term that is useful in upcoming banking exam.
Selective Credit Control (SCC) refers to the directives issued by RBI u/s 21 of Banking Regulation Act 1949 to regulate flow of bank credit against security of sensitive/selected commodities. With a view to prevent speculative holding of essential commodities with the help of bank credit, RBI issues from time to time, directive covering the margin requirements and the level and quantum of accommodation that could be granted against the SCC items.
Selective controls are designed to check the conduct of lenders only, they also influence the attitude of the borrowers, by prescribing the terms on which certain kinds of loans may be made.