From 50 Years Ago: Credit Control In Retrospect.

Monetary and credit policy during the year, according to the latest Report on Currency and Finance, was one of controlled expansion, based on the twin considerations of assisting economic growth and restraining inflationary pressures. The Report does not add much to what had already been known about general credit control. The raising of the Reserve Bank’s lending rate under the Bill Market Scheme, linked with higher stamp duty on usance bills and the raising of the lending rate on advances against Government securities, and the subsequent retreat from the untenable stand that the ‘bank rate’ had not been changed, all these tortuous processes have been chronicled with meticulous attention to detail.

experience in the use of selective credit control. Restraint on credit expansion was also exercised for the first time, says the Report, “through directives under the powers conferred by the Banking Companies Act, particularly in the field of credit for the purpose of trading in foodgrains”. In the section on Money Market Trends, the Report says: