Question

A bank which is known as bankers' bank.

Answer 1

In India, Reserve Bank Of India or RBI is known as the banker's bank. It is so called because it acts as a bank for all the commercial banks in India. RBI holds their cash reserves, lends them short -term funds and provides them the central clearing and remittances facilities. RBI is also known as the lender of last resort as when the banks face liquidity crisis , it helps them in coming out of the situation.