The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?
- 1. Other banks retain their deposits with the RBI.
- 2. The RBI lends funds to the commercial banks in times of need.
- 3. The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below:
- 1 and 3 only
- 2 and 3 only
- 1, 2 and 3
- 1 and 2 only
The Reserve Bank of India (RBI) is India's Central Banking Institution, which controls the Monetary Policy of the Indian Rupee.
The correct option is C.