Banker’* Bank and Supervisor : The Central Bank acts as a banker and supervisor to commercial banks in various respects :
(a) It provides financial assistance to banks by discounting their bills and through loans and advances against approved securities .
(b) It holds a part of cash reserve of commercial bank in two ways : Part of Cash Balance with themselves ( SLR) and another part with the central bank as *** (CRR).
(c) The Central Bank regulates commercial bank by giving them Licensce, Branch Expansion, Liquidity of Assets, Management and Winding up of Bank.
(d) The Central Bank exercise the periodic inspection of commercial banks.
