+3 votes
in Class 12 by kratos

Which bank is referred to as a Banker'* Bank ? Why is it called so?

1 Answer

+3 votes
by kratos
 
Best answer

Central Bank referred to as a Banker’ Bank because Central Bank has almost the same relation with the other commercial banks of the country that the commercial banks have with the common public. Central Bank keeps the cash balances of commercial banks and issues loans to them on requirements, in the same manner as the commercial banks do for its customers. That’ why , it is also called as bankers’ bank.

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