Question

A bank, which is known as banker's bank. Answer in a word / phrase / term.

Answer 1

By providing the facility of opening accounts for banks, the Reserve Bank becomes this common banker, known as 'Banker to Banks' function. The function is performed through the Deposit Accounts Department (DAD) at the Reserve Bank's Regional offices

Answer 2

A bank, which is known as banker's bank is the RBI (Reserve Bank of India)

RBI lends money to commercial banks and also to the government both at centre and state levels. Hence, in layman terms, it is the banker’s bank for providing financial assistance.

RBI facilitates passing of debits and credits into the bank accounts of the respective banks on account of various settlements related to clearing operations.

Hope it helps!

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