Why is the Reserve Bank of India known as the Lender of the last Resor – InterviewSolution

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1.	Why is the Reserve Bank of India known as the Lender of the last Resort?
Answer» The central bank is called lender of last resort because just as the public can borrow from commercial bank, it can borrow from Central bank, in case of need. The central bank is under the obligation to provide funds to commercial bank by rediscounting bills of exchange as and when they need financial help.

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