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?
1952
1945
1962
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.