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When did RBI introduce its Bill Market Scheme enabling bank advances against self-liquidating bills?

Question and options

When did RBI introduce its Bill Market Scheme enabling bank advances against self-liquidating bills?
  1. 1952

  2. 1945

  3. 1962

  4. 1942

Answer and explanation

Correct answer: A - 1952

The RBI introduced the Bill Market Scheme in January 1952, letting banks obtain advances from it against self-liquidating bills, so that currency could expand with seasonal credit needs. A new Bill Rediscounting Scheme followed in November 1970.

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