Mention two ways in which the Reserve Bank of India assists the commer

1.	Mention two ways in which the Reserve Bank of India assists the commercial banks.
Answer» Two ways in which the Reserve Bank of India assists the commercial banks are: 1. Central bank advances loans to commercial banks by rediscounting their bills of exchange and for this facility, central bank charges interest from them. 2. Central bank acts as a lender of last resort’. If the commercial bank is facing with a financial crisis, the only institution that can finally come to rescue it, is the central bank.

Mention two ways in which the Reserve Bank of India assists the commercial banks.

Answer»

Two ways in which the Reserve Bank of India assists the commercial banks are:

1. Central bank advances loans to commercial banks by rediscounting their bills of exchange and for this facility, central bank charges interest from them.

2. Central bank acts as a lender of last resort’. If the commercial bank is facing with a financial crisis, the only institution that can finally come to rescue it, is the central bank.

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Mention two ways in which the Reserve Bank of India assists the commercial banks.

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