What role of RBI is known as ‘lender of last resort’?
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What role of RBI is known as ‘lender of last resort’?
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When a commercial bank is faced with a financial crisis and is unable to secure funds from other sources, the central bank steps in as a "lender of last resort," providing financial assistance in the form of credit. The central bank's role saves the commercial bank from failure. As a result, the central bank acts as a guarantor for commercial banks, ensuring that the financial system in the economy is sound and healthy
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