BW Businessworld Rise In Credit May Not Always Find Its Way Towards Increasing Investments: RBI Paper Monetary policy transmission has remained a pivotal topic of interest across all central bankers. Empirically, however, it is hard to disentangle the effects of a policy change on firms' investment demand, banks' credit supply and their interactions. Photo Credit : An increase in credit may not always find its way towards investments as business entities may use credit lines to finance their current liabilities, a Reserve Bank paper said on Tuesday. The paper further says that banks respond to changes in money market spreads faster and better than changes in policy rates, which are announced by the RBI bi-monthly.