Explain ‘Banker’s Bank’ function of RBI?.
Answers
Answer:
In India, Reserve Bank Of India or RBI is known as the banker's bank. It is so called because it acts as a bank for all the commercial banks in India. RBI holds their cash reserves, lends them short -term funds and provides them the central clearing and remittances facilities.hope it helps you
Answer:
A bankers' bank is a financial institution that provides financial services to community banks in the United States of America. Bankers' banks are owned by investor banks and may provide services only to community banks. The central bank issues and regulates currency notes. It keeps reserves with a view to securing monetary stability and is called banker to banks. It regulates and supervise banks and other financial institutions. The RBI plays a vital role in economic growth of the country and maintaining price stability.