Explain why RBI is known as "lender of last resort"?
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Answer:
RBI is known as Lender of last resort because , Banks are supposed to meet their shortfalls of cash from other resources and of the other sources don't meet the demand , then they approach RBI !!!!( ･ั﹏･ั)
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Explanation:
Answer: The banks can borrow from the RBI by keeping eligible securities as collateral or any other arrangement and at the time of need or crisis, they approach RBI for financial help. Thus RBI works as Lender of the Last Resort (LORL) for banks
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