Which of the following is also known as the 'lender of the last resort'?

This question was previously asked in
SSC CGL 2023 Tier-I Official Paper (Held On: 21 Jul 2023 Shift 3)
View all SSC CGL Papers >
  1. SEBI
  2. RRBs
  3. RBI
  4. SBI

Answer (Detailed Solution Below)

Option 3 : RBI
super-pass-live
Free
SSC CGL Tier 1 2025 Full Test - 01
100 Qs. 200 Marks 60 Mins

Detailed Solution

Download Solution PDF

The correct answer is RBI.

Key Points

  • The correct answer is option 3, RBI, which is also known as the 'lender of the last resort'.
  • The lender of the last resort is a term used to describe an institution that provides emergency funds to other financial institutions when they are facing a shortage of liquidity.
  • This is usually done to prevent a financial crisis or a bank run.
  •  In India, the Reserve Bank of India (RBI) is the lender of the last resort.
  • It has the authority to lend money to banks and other financial institutions in case of a crisis.
  •  The RBI also acts as the regulator of the banking system in India. It sets policies and guidelines for banks to follow, and monitors their performance to ensure that they are operating in a safe and sound manner.

Additional Information 

  • SEBI(Securities Exchange Board of India) is the regulator of the securities market in India. It does not have the authority to lend money to financial institutions.
  • RRBs (Regional Rural Banks) are a type of bank that focuses on providing banking services to the rural population. They do not have the authority to act as the lender of the last resort.
  •  SBI (State Bank of India) is a public sector bank in India. While it is one of the largest banks in the country, it does not have the authority to act as the lender of the last resort.

Latest SSC CGL Updates

Last updated on Jul 17, 2025

-> This year, the Staff Selection Commission (SSC) has announced approximately 14,582 vacancies for various Group B and C posts across government departments.

-> The SSC CGL Tier 1 exam is scheduled to take place from 13th to 30th August 2025.
->  HSSC CET Admit Card 2025 has been released @hssc.gov.in

->  Aspirants should visit ssc.gov.in 2025 regularly for updates and ensure timely submission of the CGL exam form.

-> Candidates can refer to the CGL syllabus for a better understanding of the exam structure and pattern.

-> The CGL Eligibility is a bachelor’s degree in any discipline.

-> Candidates selected through the SSC CGL exam will receive an attractive salary. Learn more about the SSC CGL Salary Structure.

-> Attempt SSC CGL Free English Mock Test and SSC CGL Current Affairs Mock Test.

More Money and Banking Questions

Hot Links: teen patti app teen patti master 2023 teen patti classic teen patti joy vip