(i) Publicity: The Central Bank undertakes publicity to educate and influence the commercial banks and the public opinion about the money market trends and banking conditions in the country. It publishes statements of its assets, policies, plans and programmes to be adopted in the country. During inflation it advice the banks and people to avoid non-productive loans.
(ii) Moral persuasion : Under this method, the Central Bank applies the policy of persuasion and pressure on the commercial banks in order to get them to fall in line with its policy.
