GS IAS Logo

< Previous | Contents | Next >

RBI's reserves

The RBI keeps a large reserve of cash in its money jar, which the government is looking to take for its developmental programme. The government may be of the view that the RBI's large reserve cash, if it is sitting idle, may be put into use. But the RBI is called the "lender of last resort" for a reason -- it may need its reserves to step in if a crisis threatens to bring down the entire financial system.