Economy, asked by subahiali0, 1 year ago

how does RBI act as Banker's Bank?

Answers

Answered by mohitparmar
2
because banks have to deposit their about 50 % of money in RBI and RBI pays interest on it..

and if bank needs more money it can Land from RBI..
Answered by SHARRSHAN
3
BANKERS' BANK: The ReserveBank of India acts as a bank for commercial banks. In this capacity it holds their cash reserves, lends them funds for short terms and provides economical and expeditious central clearing and remittance facilities. ... As Banker's bank theRBI can implement its monetary policy more effectively.
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