The Reserve Bank of India acts as the " Banker's bank" in the sense that

The scheduled banks can borrow from the RBI in time of need

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The RBI fixes the conditions of cash reserve requirement which the scheduled banks have to follow

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The RBI controls the credit operations of the scheduled banks

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The RBI controls the banking system through the system of licensing

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Solution

The correct option is C The scheduled banks can borrow from the RBI in time of need
The Reserve Bank of India acts as Banker's bank in the sense that the scheduled banks can borrow from the RBI in time of need.

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Similar questions

92. The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following? [2012 - I]

i) Other banks retain their deposits with the RBI.

ii) The RBI lends funds to the commercial banks in times of need.

iii) The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below:

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