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Explain the role of a Reserve …

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Explain the role of a Reserve Bank of India as the lender of last resort??

Posted by Supriya Gurung 7 years, 8 months ago

CBSE > Class 12 > Economics

2 answers

Yami Wadhwa 7 years, 8 months ago

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.

Akshay Sankhla 7 years, 8 months ago

As a lender of Last Resort when people lose their faith on commercial banks and start withdrawing the money from banks then the commercial bank goes into a financial crisis in such a time RBI is one of the bank which stand up and helps commercial bank to come out of the financial crisis by lending money and acting as a lender of last resort

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