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Mention two ways in which the Reserve Bank of India assists the commercial banks.

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Two ways in which the Reserve Bank of India assists the commercial banks are: 

1. Central bank advances loans to commercial banks by rediscounting their bills of exchange and for this facility, central bank charges interest from them. 

2. Central bank acts as a lender of last resort’. If the commercial bank is facing with a financial crisis, the only institution that can finally come to rescue it, is the central bank.

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