What is role of RBI as …
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Posted by Md Mumtaz 6 years, 11 months ago
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Sahin Kulsum 6 years, 11 months ago
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Yogita Ingle 6 years, 11 months ago
When a commercial bank faces financial crisis and fails to obtain funds from other sources, then the central bank plays the vital role of ‘lender of last resort’ and provides them with the financial assistance in the form of credit. This role of the central bank saves the commercial bank from bankruptcy. Thus, the central bank plays the role of guarantor for the commercial banks and maintains a sound and healthy banking system in the economy.
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