Question

Describe the lender of last resort function of RBI?for 4 marks.

Answer 1

Answer:

The lender of last resort functions to protect individuals who have deposited funds—and to prevent customers from withdrawing out of panic from banks with temporary limited liquidity.

Hope it help you

Explanation:

Believe in god

#Respect girls

#Riifams...

Answer 2

Answer:

Explanation:The RBI is a bankwe and regulator of all the scheduled banks in the country. It manages the Cash Reserves of banks, determines the direction of credit as well as directs the credit policy and rate of interest for all banks. It is also the lender of last resort for the scheduled banks in case of emergency.