On 21st December, 2022, the Reserve Bank of India has declared its monetary policy and as per the source https://rbidocs.rbi.org.in the extract of the the Minutes of the Monetary Policy Committee meeting has been given below.

December 5-07,2022 (Under Section 45ZL of the Reserve Bank of India Act, 1934) The fortieth meeting of the Monetary Policy committee, constituted under Section 45ZB of Reserve Bank of India Act-1934, was held during December 5-7, 2022. The Committee decided to increase the lending rate by 35 basis points to 6.25 percent with immediate effects. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth.

On this basis of this article answer the question.

Identify the qualitative tool to be used by Central Bank to control the credit situation in the economy.

Margin Requirements

The correct answer is option (2) : Margin Requirements

Margin Requirements: This is a qualitative tool that regulates the amount that investors must fund out of their own pocket when purchasing securities. By adjusting margin requirements, the central bank can influence the level of credit in the economy.

The other options are quantitative tools:

Open Market Operation (OMO): This involves buying or selling government securities to influence the money supply in the economy. It's a quantitative tool as it directly impacts the total amount of money available.
Statutory Liquidity Ratio (SLR): This is a minimum percentage of deposits that commercial banks need to maintain in government securities and other approved liquid assets. Similar to OMO, it's a quantitative tool affecting the money supply.
Repo Rate (Repurchase Agreement Rate): This is the interest rate at which the central bank lends short-term funds to commercial banks. By adjusting the repo rate, the central bank influences commercial bank lending rates and the overall cost of borrowing. This is also a quantitative tool that indirectly affects credit availability.