Question:
Elaborate the ‘Banker’s Bank and Supervisor’ function of the Reserve Bank of India.
Elaborate the ‘Banker’s Bank and Supervisor’ function of the Reserve Bank of India.
Show Hint
The RBI ensures liquidity and stability in the banking system by acting as a regulator and supervisor.
Updated On: June 02, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
The Reserve Bank of India (RBI) performs the following functions as the ‘Banker’s Bank and Supervisor’:
Banker’s Bank: The RBI acts as a banker to all scheduled commercial banks. It provides short-term funds, acts as a lender of last resort, and facilitates inter-bank clearing.
Supervisor: The RBI supervises and regulates banks to ensure financial stability. It monitors compliance with banking regulations, manages non-performing assets (NPAs), and ensures that banks maintain required reserves. These functions help in maintaining stability and liquidity in the financial system.
Was this answer helpful?
0
0
Questions Asked in CBSE CLASS XII exam
- Draw the structure of the major monohalo product for each of the following reactions:
- CBSE CLASS XII - 2025
- Haloalkanes And Haloarenes
- If \( x = e^{\frac{x}{y}} \), then prove that \( \frac{dy}{dx} = \frac{x - y}{x \log x} \).
- CBSE CLASS XII - 2025
- Differentiation
- The value of \( \cos \left( \frac{\pi}{6} + \cot^{-1}(-\sqrt{3}) \right) \) is:
- CBSE CLASS XII - 2025
- Trigonometry
- A small conducting sphere A of radius \( r \) charged to a potential \( V \), is enclosed by a spherical conducting shell B of radius \( R \). If A and B are connected by a thin wire, calculate the final potential on sphere A and shell B.
- CBSE CLASS XII - 2025
- Electric charges and fields
- Show the variation of binding energy per nucleon with mass number. Write the significance of the binding energy curve.
- CBSE CLASS XII - 2025
- Atoms and Nuclei
View More Questions
