Economy, asked by harkirtpadda5741, 1 year ago

What role of RBI is known as ‘lender of last resort’?

Answers

Answered by maddy4747
36
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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Answered by Vampire06
20

If a commercial bank fails to get credit from other banks it approaches to RBI n RBI helps it by lending money as loans . So it is called as lender of last resort..

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