The Reserve Bank of India works as a lender of the last resort (LOLR). Which among the following is the correct statement in this context?

Answer: [B] RBI meets all the reasonable demands of the commercial banks in times of difficulties

RBI is known as Lender of Last Resort because, banks are supposed to meet their shortfalls of cash from other sources and if the other sources don’t meet the demand, then they approach RBI.

This question is a part of GKToday's Integrated IAS General Studies Module