In any economy, the banker to bank function is done by the central banks including the RBI. As a banker’s bank, the RBI gives several services to commercial banks. The RBI as a banker to banks provide certain services to the banks that are vital for the day to day operations of the banks as well as enhancing their stability and health. As the bankers’ bank, the RBI provides:
RBI as a banker’s bank focuses on:
Enable smooth and swift clearing and settlement of inter-bank transactions (cheques etc).
RBI facilitates fund transfer among banks (RTGS, NEFT etc).
RBI gives account facility to banks and banks maintain cash reserves with the RBI.
RBI gives lender of last resort facility to banks.
